Noted: Slow Down in Automobile Sector
The Government always attempts to keep and improve momentum of the economy through a package of measure for comprehensive and continued development of the auto sector as and when required, Minister of Heavy Industries Prakash Javadekar has assured Rajya Sabha on 25 Nov 2019.
He summarized some of the steps taken by the Government to counter automotive slowdown:
Reduction in Corporate Tax to 22%;
Continuation of registration of ICE and EV in future;
Scrappage policy under consideration;
Proposed increase in registration of new cars deferred till June 2020;
Funds worth Rs.70,000 crores released to PSU banks;
Linking of repo rate to interest charged for vehicle purchased.
As per the industry estimates, contribution of passenger vehicles to the Gross Domestic Product (GDP) has varied between 2.1% to 2.9% and the contribution of the Automotive Sector as a whole to GDP has varied between 6.0% to 7.2% from 2010-11 to 2018-19, he said in a written reply to the Sabha.
He noted the slow down in the sector, which sold 11.7 million vehicles (all categories) were during April – September 2019 as against 14.1 million vehicles during the same period in previous year.
But the festival demand has shown year on year growth at 0.3% in the Passenger Vehicle Segment, he pointed out.
Retrenchment of temporary workforce has been reported by the industry. However, no confirmed data on job loss is available with the Government, said the Minister. fiinews.com