The Indian Auto Industry is battling with low sales, high interest rates and large inventories. Expect for Maruti Suzuki & Hyundai which saw marginal sales increase, most car manufacturers have posted decline in sales in the first month of the year. Exports also saw a decline when compared to 2012 performance.
But there might soon be some relief for the auto makers as Minister for Heavy Industries and Public Enterprises Praful Patel said he will take up the issue with the Finance Minister P Chidambaram for providing a stimulus for the autosector which may help to spur growth in the wake of economic slowdown.
Last time the Autosector got relief was in 2008, when most companies were severly hit by the recession crisis. The Auto Industry plays a large role in the country economic growth.
The Society of Indian Automobile Manufacturers (SIAM) has revised its sales forecast for passenger cars this fiscal to zero to one percent as against an earlier forecast of 1-3 per cent.
SIAM has suggested that the government reduce excise duty on cars other than small cars to 20 per cent and said the duty on 10-13 seater vehicles should be at par with buses that is 10 per cent.
Source: ET