Delivering his keynote address at the Society of Indian Automobile Manufacturers (SIAM) 59th Annual Convention last week in Delhi, Chief Guest Nitin Jairam Gadkari, Minister for Road Transport & Highways assured the automobile industry of support from the government for expeditious revival in their business. He further assured the gathering of taking up the industry’s demand of GST reduction with the finance minister.
“The industry has asked that there should be reduction in GST of petrol and diesel vehicles considering the forthcoming increase in prices of vehicles and the BS VI norms deadline. Even if GST is reduced for some time, it will help the sector to increase vehicle sales.” He also said, “GST on electric vehicles has been reduced from 12% to 5%. I will propose to the finance ministry to make the same benefit available for hybrid vehicles.”
Gadkari assured that the government is trying to bring out the scrapping policy quickly, which will lower production costs to a huge extent. He further added, “I also want to clarify that though there have been talks that government is planning to ban petrol and diesel vehicles, we are not going to do anything like that.”
Uday Kotak, President- Designate, CII and Managing Director & CEO, Kotak Mahindra Bank said, “Auto industry needs to emphasize on exports to boost supply. This will help to overcome the stress present in the domestic market. The rupee which is weak at present will also favour this method.”