Set Back for Automotive Sector

As per the report of  Soceity of Indian Automobile Manufactures,an apex body of inidan automotive  companies ,known as SIAM,the sale of vehicles is suffering  prolonged decline in the sector ,which may lead to serious job loss as well as finanical challenges.According to Mr Ranjan Wadhera,President of the apex body,the situation has been detoriated and need urgent intervention  by Goverment.According to him,the increased rate o GST plays vital role in this set back.The apex body is all set to approach the goverment to reconsider the GST rate for automotive sector.The sector contributed around Rs  120,000 C r to the total GST collection last year.If the rate of decline exists the collection of GST will be drastically reduced.

As per the statistics available,the Domestic sale of the  Two Wheelers diminished to nearly 11.50 %  during the period,during the period  April /June 2019.The Commercial vehicle sector recorded a decline rate of  9.5 % wheras the passenger sector  deeply affectred with a decline rate more than      18 %.The total  reduction in sale of vehicle is more than 12 % during this period.
The SIAM hold the view that the industry is experiencing more stringent regulation in th last two year than it met in the last 13 years.The apex agency warns that the industry will have to face serious job cut to cop up with the economical demands.

Apart from the GST ,the budget charged more on certain auto parts as well as imported units.The additional infrs cess Rs 1/ also added fuel to the issue.The increase in the purchase cot of insurance and non availabiliy of vehicle loan at the spot are also pointed out as the reason for this decline.