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India’s economic trajectory, as outlined by Finance Minister Nirmala Sitharaman, paints a picture of resilience and potential amidst global uncertainties.
India government is sensitive towards the slowdown in the auto industry, a senior Maruti Suzuki official said on Thursday.
According to Maruti Suzuki Chief Executive Kenichi Ayukawa, the government is sensitive to the issue and taking preventive measures. Ayukawa was addressing the annual convention of Society of Indian Automobile Manufacturers (SIAM).
The auto sector presently suffers from a sales downturn due to several factors like high GST rates, farm distress, stagnant wages, and liquidity constraints. The sales slowdown has hit hard to the passenger vehicle manufacturers.
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On Sunday, the company reported a 32.7 per cent decline in its total vehicle sales in August 2019 on a year-on-year (YoY) basis.
Last month, the company sold a total of 1,06,413 units, including exports, compared to 1,58,189 vehicles in August 2018. In revival stance, Finance Minister Nirmala Sitharaman had, on August 23, announced that government departments would be allowed to buy new vehicles.
Additionally, automobiles purchased till March 31, 2020, can avail the benefit of additional depreciation of 15 per cent, with total depreciation up to 30 per cent.
“It is welcoming that Government is working to introduce measures to improve the situation,” said Ayukawa. All key stakeholders – OEMs (original equipment manufacturers), suppliers, dealers, banks, etcetera, have to collaborate with confidence. We have to work together to come out of the slowdown,” added Ayukawa.
(With input from agencies)
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