Last Updated: 5/21/2025 11:39:00 PM
Aauto industry representatives met commerce and industry minister Ms Nirmala Sitharaman to discuss the challenges faced by the sector because of a two-year long demand slump. Representatives of industry body Siam also pitched their demands for the speedy implementation of the goods and services tax (GST) and fleet modernisation of commercial vehicles. Ms Sitharaman said that “Discussed issues facing the automobile industry with representatives of Society of Indian Automobile Manufacturers (Siam).” According to Siam officials, they also discussed the possibility of retaining the current excise rate beyond June 30th. Better consumer sentiments have helped to revive the passenger car segment, where sales rose 3% in May after falling 4.6% in 2013-2014 and over 10% in April. However, the sale of commercial vehicles has not grown because of the dearth of infrastructure projects. “Our main demand from the new government will be the continuation of excise duty cuts. It has helped the sector to reduce losses,” Siam director-general Vishnu Mathur said. In the interim budget, the excise duty on small cars, scooters, motorcycles and commercial vehicles were cut to 8% from 12%. For SUVs, the duty was slashed to 24% from 30%, while on large cars it was reduced to 24% from 27%. The government cut excise duty on mid-sized cars to 20% from 24%. Source – Telegraph India
