Center sensitive to the slowdown in the automotive sector: Maruti Suzuki
NEW DELHI: The government is sensitive to the slowdown in the automotive industry, a high Maruti Suzuki official said Thursday.
According to Maruti Suzuki Executive Director Kenichi Ayukawa, the government is sensitive to the implications of the automotive sector slowdown and is taking steps to reverse it.
Ayukawa was addressing the annual convention of the Society of Indian Automobile Manufacturers (SIAM) held here.
At present, the sector suffers a drop in sales due to several factors, such as high GST rates, agricultural problems, stagnant wages and liquidity restrictions.
The slowdown in sales has strongly affected the manufacturers of passenger vehicles. On Sunday, the company reported a 32.7 percent decrease in its total vehicle sales in August 2019 on an annual (year-on-year) basis.
Last month, the company sold a total of 1,06,413 units, including exports, compared to 1.58,189 vehicles in August 2018.
India's largest car manufacturer, Maruti Suzuki has decided to shut down production of passenger vehicles for two days in its Gurugram and Manesar Haryana plants.
To help revive the sector, finance minister Nirmala Sitharaman On August 23, he announced that government departments could buy new vehicles.
In addition, cars purchased until March 31, 2020 can take advantage of the benefit of an additional depreciation of 15 percent, with a total depreciation of up to 30 percent.
In addition, BS-IV vehicles purchased until March 31, 2020 will remain operational throughout their registration period.
It is positive that the Government is working to introduce measures to improve the situation, Ayukawa said.
All key stakeholders: OEMs (original equipment manufacturers), suppliers, distributors, banks, etc., must collaborate with confidence. We have to work together to get out of the slowdown.