Slump in Sale of Automobiles
There are cyclical slowdowns in many economies. 17.1 million vehicles (all categories) were sold during April – December, 2019 as against 20.3 million vehicles sold during the same period in 2018. Retrenchment of temporary workforce has been reported by the industry. However, no confirmed data on job loss is available with the Government.
The Government, as a policymaker, always attempts to keep and improve momentum of the economy through a package of measure for comprehensive and continued development of the auto sector as and when required. Some of the steps taken by the Government to counter automotive slowdown can be summarized as under:
Reduction in Corporate Tax to 22%
Continuation of registration of ICE and EV in future
Scrappage policy under consideration
Proposed increase in registration of new cars deferred till June 2020
Funds worth Rs. 70,000 crores released to PSU banks
Linking of repo rate to interest charged for vehicle purchased