New Delhi: The union government will stand by the automobile industry and will take steps to stimulate demand in the months to come, said Anurag Thakur, minister of state, Ministry of Finance and Corporate Affairs, during the 59th annual session of the Automotive Component Manufactures Association of India (ACMA).
Taking a cue from the assertions of Finance Minister Nirmala Sitharaman, the junior minister also urged the stakeholders in automobile industry to approach the state governments for a reduction in Goods and Services Tax (GST) imposed on vehicles and components.
“When the first the set of measures were announced, the concerns of the automobile industry was addressed. We stand by you and we know that this industry will play a huge role in making India a $5 trillion dollar economy. RBI has made some significant decisions which will push demand. The govt will consider various measures and including the scrappage policy," said Thakur.
The automobile industry has been clamouring for a reduction in the rate of GST imposed on vehicles in order to bring the customers back to showrooms during the festive season.
Sales of automobiles started to decline since July last year after the bankruptcy of IL&FS. The slowdown further intensified in the first quarter of the current fiscal as wholesales started to decline in double digits.
“We have received multiple presentations on GST rate cut but it needs to be approved by council and fitment committee. You should take it to the state governments as well as a consensus needs to be formed in order to reduce the rate," added Thakur.