Be it tightening regulations or a general economic slowdown, the Indian auto industry has been facing considerable headwinds for quite some time now. The ongoing COVID crisis has compounded challenges further, with collapsing demand in recent months. While carmakers believe that the government holds the key to reviving demand, the Centre has indicated that the auto industry, and especially the passenger vehicle (PV) sector, might not command the highest priority when it comes to receiving immediate and direct government aid.
- Government remains noncommittal on GST rate cut.
- Scrappage policy announcement soon.
- Reducing royalties to automakers’ parent firms suggested.
Government noncommittal on GST reduction
A reduction in vehicle GST rates continues to be the foremost demand of auto manufacturers. At the recent annual convention of Society of Indian Automobile…