Begin typing your search above and press return to search.

Auto Sector asks for Financial Package to Tide over the Crisis

Auto Sector asks for Financial Package to Tide over the Crisis

Sentinel Digital Desk

New Delhi: Forced to cut down production in the face of falling sales, Auto Sector have urged the government for a relief package to boost consumer sentiment.

In a meeting with Finance Minister Nirmala Sitharaman, the industry captains on Wednesday suggested to reduce GST on cars from 28 per cent to 18 per cent, ease financing and bring out a scrappage policy among some of the key steps to revive the sector.

R.C. Bhargava, Chairman of largest carmaker Maruti Suzuki, said that industry had put forward the situation as government wanted to understand what is happening.

"It was explained to the government," Bhargava told IANS without elaborating on the specific demands made by the auto sector.

As per industry sources, automakers told the Finance Minister about job losses due to scaling down of production and closure of dealerships across the country. Auto ancillary firms have also laid off temporary workers in the wake of sliding demand.

Maruti is learnt to have sent home over a thousand temporary workers in the last few months with crisis deepening by the day. The top carmaker witnessed 36 per cent decline in its monthly sales during July, 2019. (IANS)

Also Read: India Ratings maintains stable outlook for auto sector in 2019-20

Next Story