Question : High Revenue Losses in Automobile Industry

(a) whether the Government has taken note of the high revenue losses being suffered by the Automobile Industry in the country;

(b) if so, the details thereof;

(c) whether the Government has received any representation from All India Automobile Industry Association urging the Government to come to their rescue in the wake of rampant spread of COVID-19 in the country;

(d) if so, the details of the concessions and exemptions sought for their survival; and

(e) the steps being taken by the Government in this regard?

Answer given by the minister

THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI ARJUN RAM MEGHWAL)

(a) & (b): The sales in some segments of the Automobile industry has improved over last few months. The details are as under:

Sales of vehicles
Category Year Oct Nov Dec Jan
Passenger vehicle 2019-20 271,737 253,139 222,728 248,840
2020-21 310,294 264,898 252,998 276,554
Commercial vehicles 2019-20 195,211 (Oct-Dec) NA
2020-21 193,034 (Oct-Dec) NA
Three- wheelers 2019-20 66,985 55,778 53,795 60,903
2020-21 26,187 23,626 22,126 26,335
Two-wheelers 2019-20 1,757,180 1,410,939 1,050,038 1,341,005
2020-21 2,053,814 1,600,379 1,127,917 1,429,928
Source: SIAM

(c) to (e): Yes, a few representations have been received from Society of Indian Automobile Manufacturers (SIAM) seeking support. The Government, as a policy maker, attempts to keep and improve momentum of the economy through a package of measures for comprehensive and continued development of the industry. Recently, the following measures have been announced to support Auto Sector:

i) Union Cabinet on November 11, 2020 has given its approval to introduce the Production Linked Incentive (PLI) scheme to 10 specified key sectors including Automobile & Auto Components sectors for a period of five years with a financial allocation of Rs. 1,45,980 crore to enhance India’s Manufacturing Capabilities. The automotive industry is a major economic contributor in India. PLI scheme will make the Indian Automotive Industry more competitive and will enhance globalization of the Indian Automotive sector.

(ii) Announcement of a voluntary vehicle scrapping policy, to phase out old & unfit vehicles.

(iii) The whole sale, and retail trade and repair of vehicles was brought under the ambit of the MSME Development Act.

(iv) In Budget 2021-22, a scheme to support augmentation of public transport bus services is announced with total outlay of Rs. 18,000 crore.

********

Download PDF Files