Union Minister Prakash Javadekar reassures the Auto Sector of Government Support for demand revival
Mumbai: Society of Indian Automobile Manufacturers (SIAM) organized its 60th Annual Convention today, titled “Re-Building the Nation, Responsibly”. At the convention, Guest of Honour, Shri Prakash Javadekar, Hon’ble Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises, Government of India, assured the automobile industry of support from the Government in reviving demand, which has taken a dire hit owing to the COVID 19 pandemic.
Putting across recommendations to the government towards boosting demand in the automobile sector, Mr. Rajan Wadhera, President, SIAM & Senior Advisor, Mahindra & Mahindra, said, “While we thank the Government for all the support it has extended to the auto sector, such as reduction in the repo rates, credit access etc. We now need more specific steps to boost demand in the sector, as the festive season is fast approaching. Some of the key asks include lowering of GST rates from 28 to 18% across all vehicle categories and automotive components, an incentive based vehicle scrappage policy and taking concrete steps towards realizing the vision of the Automotive Mission Plan.”
Reassuring the automobile industry, Shri Prakash Javadekar, said, “Infrastructure is the only answer to the growth story of India and the Government is looking at investing 100 lac crore towards infrastructure projects over the coming times. This will also hugely benefit the automobile industry.”
While acknowledging the auto industry’s recommendation for reduction in GST rates, he further added that “GST reduction will ultimately benefit the Government and I will be taking it up with the Finance Minister and Prime Minister’s office. He also assured that a well-entrenched vehicle scrappage policy will come soon that will bode well for the automobile industry.
Mr. Javadekar added, “The Government has now shifted lockdown to containment zones. There will be no lockdowns and supply side blockages will ease out. The Government is also focusing on e-mobility by pushing for creating better infrastructure and providing incentive to electric vehicle manufacturers. Once cost of electrified vehicles goes down, demand will increase and this segment will be highly profitable.”
Mr. Uday Kotak, President, CII and Managing Director & CEO, Kotak Mahindra Bank, commented, “In the last several months, the Government of India has shown high sensitivity to lives, livelihoods and the overall economy. Now is the time for the Government and the industry to join hands and work in partnership, to salvage the current slump. Owing to the COVID 19 pandemic, we are in a “never normal period” with new opportunities and challenges. As the festival season is approaching, we expect to see an increase in demand. Therefore, it is now imperative for us to ease out the supply chain bottlenecks. Money is aplenty, banks are ready, willing and eager to extend easy loans and financing option. We need to make sure that OEMs do not face any supply side disruptions”.
Mr. Kenichi Ayukawa, President Elect, SIAM and Managing Director and CEO, Maruti Suzuki India, said, “The industry is looking forward to sound development which means, increase in production, sales, exports and more localization of parts including electronics. It means Self-reliant i.e. Atmanirbhar Bharat”.