Government Will Respond To Demand Of Auto Industry: Finance Minister

Finance minister Nirmala Sitharaman has said that the government will respond to the demands of the auto industry. The auto industry which is facing its worst ever sales slowdown in two decades has already been demanding respite in GST rates from the government, even if it means as a temporary measure. ANI quoted Sitaraman saying, "Automobile industry is now affected by BS6 and the mindsets of millennial, who now prefer to have Ola or Uber rather than committing to buying an automobile"

India's monthly passenger vehicle and car sales recorded their steepest fall ever in August, according to data released by a top industry body, underscoring the unprecedented slowdown in the sector. Last month, the sector recorded the worst decline since 1997-98, data put out by the Society of Indian Automobile Manufacturers (SIAM) showed. The percentage sale of two-wheelers is at a three-year low. Overall passenger car sales dropped by a significant 31.57 per cent last month with 196,524 units sold compared to 287,198 units in August 2018.

Auto companies' heads urged the government to revive the sector, crippled by sluggish demand resulting in hundreds of thousands of job cuts. Road and Transport minister Nitin Gadkari assured them that the government was working to help the sector and said he had asked the finance ministry to consider cutting taxes on petrol and diesel, as well as hybrid vehicles. The GST council will meet on September 20 to decide on the rate cuts for the industry