The Indian automotive industry is considered the backbone of Nation in terms of the employment it generates and its economic contribution to the country and is one of the most important manufacturing sectors for the country. As per the latest report by SIAM, Indian Auto Manufacturers are knocking doors of the government. The companies are demanding for a temporary 10% cut in tax on the sale of all automobiles and auto parts and other incentives involved. With the automobile sector facing a passive dip in sales and revenue from past few months even before the lockdown, the auto manufacturers in India demands a temporary tax cut on cars, trucks and motorbikes as well as incentives to scrap old vehicles to the boost sales and generate the appropriate revenue after the COVID-19 outbreak which has brought the economy to a standstill.
The decision was taken when the vehicle sales fell to 18% in India fell in the financial year 2020, which was recorded as the steepest fall in years, due to the weak economic growth in the country over the last year. Not even this, the earlier condition has collaborated by a nationwide lockdown to slow the spread of the novel coronavirus in India.
As per the reports by SIAM, some of the domestic companies like Maruti Suzuki and Tata Motors and some other local unit said on Friday that it has sought government aid because of the prevailing conditions.
The company has not specified the period which they term “temporary”. Not only the automotive sector boosts the economy of the country, but this sector is one of the most important manufacturing sectors in terms of the employment it generates and its economic contribution it accounts to the nation’s wealth. In the recent interview by the SIAM President, Rajan Wadhera said, ”
The COVID-19 outbreak has left the society and automobile sector in “deep distress”. Along with other industries, auto manufacturing has also been grounded and car showrooms have been shut since late March when PM Narendra Modi announced a 21-day lockdown to stop the chain of transmission of the virus spread which has been extended until May 3 at least until further notice.