The auto industry is now fully hinged on the coming festive season and monsoon conditions to emerge from the severe recession. But the improvement also depends more on whether the government takes some steps to boost market demand and relieve the industry. The industry is assuming that it is necessary to take immediate steps on short-term and long-term measures, ranging from rational changes in GST rates to clarity about policies.
For your information, the auto industry, which has been struggling with vehicular sales for the past nine months, is not going to be undermining the troubles. The production costs of auto companies have increased significantly in the past year due to policies related to customer safety in vehicles and rising raw material prices. According to a senior official of a large two-wheeler company in the domestic market, a large part of this increased cost has been borne by the companies themselves. But the government should take a step forward in this difficult time by giving relief to GST and custom duty. Currently, the GST rate of 28 and 18 per cent is effective in the auto industry. The industry is treating the 18 per cent GST rate as favourable in most cases. "The industry needs immediate government help," says Ram Venkataramani, president of Ekma, an organisation of corporate companies. Vehicles will become costlier after bs-6 standards come into effect from April next year. The government can help maintain market demand by reducing the GST rate."
Here's What The Auto Industry Expects
Rational change in the rates of GST, elimination of dual rates. MOVE.The rules made for the open market of components, must be standard. The increased price of raw materials has also led the industry to seek relief in many cases, including regulations from the government.The industry is at increasing risk of vehicles becoming costlier due to rising costs
According to media reports, the declining sales of vehicles have also affected the component industry. The growth rate of these companies also declined from 18.3 per cent last year to 14.5 per cent. In addition, the industry is also in trouble due to heavy imports of components from China. The issue is also expected to be intervened by the Ekma government. Winnie Mehta, director-general of Ekma, says that even if the quality of the components sold in the open market becomes standard, it will be a great relief for the companies. The auto industry has long been trying to get primary industry status for itself.In May this year, SIAM, an organisation of auto companies, had sought this effect after the formation of a new government at the Centre. Auto industry experts say that if this happens, many of the industry's difficulties will be easier.
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