AGENCIES, New Delhi: The extension of the lockdown maybe a strong measure to contain coronavirus, but the extension of the lockdown whether we like it or not has taken its toll on many industries. The auto and 2-wheeler industry seems to be worst hit.
To sustain operations in an environment full of uncertainties, automakers want a temporary tax cut on cars, trucks and motorbikes as well as incentives to scrap old vehicles.
Passenger vehicle sales in the country fell 18 per cent in the year to end-March 2020, their steepest recorded fall in years, after weak economic growth in the country over the last year.
The Society of Indian Automobile Manufacturers (SIAM), an influential industry body whose members include domestic companies such as Maruti Suzuki and Tata Motors and local units of global carmakers such as Volkswagen AG and Toyota Motor Corp, has confirmed that it has sought government help in this matter.
The auto industry has proposed a temporary, 10 per cent cut in tax on the sale of all automobiles and auto parts and incentives in the form of tax rebates, for car owners to scrap their old vehicles, SIAM said in a media statement.
The coronavirus outbreak has left it in “deep distress”, making financial support and a revival of demand a necessity, SIAM president Rajan Wadhera said.