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Industry leaders meet FM as Auto sector witnesses major slump, 2 lakh job cuts in last 3 months

Automobile sector has posted the worst sales in two decades in the month of July with some top passenger car makers even plunging to their worst show in about two decades.

Industry leaders meet FM as Auto sector witnesses major slump, 2 lakh job cuts in last 3 months

New Delhi: Amidst the ongoing slowdown in the Automobile sector, Industry leaders met Finance Minister Nirmala Sitharaman with an aim to find a concrete solution to the woes of the sector.

Automobile sector has posted the worst sales in two decades in the month of July with some top passenger car makers even plunging to their worst show in about two decades.

Earlier this week, finance Minister Sitharaman met the PSU bank heads and major private sector banks on August 5 to review credit growth in various sectors like MSMEs, retail, auto, NBFCs and HFCs.

Vinkesh Gulati, Vice President FADA, after meeting the FM, told Zee News said that the Industry has been going through a very bad phase since 2001 with over 2 lakh job cuts in the last 2-3 months.

He said that the Industry veterans have raised the issue of improving sentiments and need for revival of the sector. They have also pushed for ease of financing. He also said that the sector has laid emphasis on giving more incentives to be given to encourage 10-15 year old vehicle owners to come forward for a better scrappage policy.

Nirmal Minda, Chairman and MD of Minda Industries, said that the industry leaders held a very positive discussion with the Finance Minister. Auto sector has put forth its demand and apprised the FM regarding the serious condition of the sector. He expressed hope that government will soon come with a solution on this.

Ram Venkatramani, President ACMA said, that the meeting held in a very positive atmosphere, expressing hope that positive measures will be taken to get auto industry out of the slump.

“We have requested for reduction in GST rate from existing  28 percent to 18 percent, effective scrappage policy for older vehicles, liquidity support for the sector and ease of financing for the customers and sector players,” he added.

Meanwhile Heavy Industries Minister Arvind Savant told Zee Media that the government has held an elaborate discussion with the representatives of the automobile sector regarding the ongoing slump, reduction in GST rates and many other pressing issues. The minister added that the government will soon come with a solution regarding the sector.