Auto industry leaders made a strong plea to the government to offer demand incentives to spice up sales ahead of the festive season at (SIAM) Society of Indian Automobile Manufacturers’ 60th annual conclave titled Reviving Demand.
Submitting industry’s appeal to Prakash Javadekar, Minister of Heavy Industries and Public Enterprises—the guest of honor for the virtual event, Rajan Wadhera, President, SIAM said, “The industry has not been in a position to realise the investment it made in transition from BSIV to BSVI because of lack of consumer demand. Due to this fact, it’s not ready to make further investment for new regulations.” These include CAFÉ (corporate average fuel efficiency and RDE (real driving emission) which are deliberate for year 2022 and 2023.
Javedkar conceded that the measures such as discount in GST and scrappage incentive scheme should be implemented at the earliest. “The demand push needs to be done immediately. The GST council should remember the revenue have an effect on and other factors. I’m hoping you get some good news very soon,” he said.
The government, he added, may be in the process of finalising the export incentive scheme to make India a preferred export destination.
The industry, pointed out Wadhera, was once on target to meet the target of extra job creation and contribution to the GDP envisaged as a part of Automotive Mission Plan 2026, but the disruptions in the final three years and now the pandemic has pushed auto industry’s volume to where it was once a decade back.
He attributed the sales slump to an overdose of regulations, liquidity issues and slowing economy.