New Delhi: To counter the massive impact of Corona Virus Govt. has initiated numbers of economical measure to meet the challenges of the negative impact of massive pandemic and country wide lock down.
But the auto industry particularly the commercial vehicle segment is still waiting for a economical policy to reform the sector in long terms.
It is very important to have interventions by the government to revive the demand in the sector which is currently reeling under pressure from prolonged slowdown and an unprecedented pandemic, said a top industry executive.
Speaking at a media platform Mr. Vipin Sondhi, MD and CEO of the country’s leading commercial vehicle maker,
Ashok Leyland said that the economic package announced by the government is for short term sustenance. The realignment of GST rates and scrappage policy are the demand triggers that the auto industry needs in this hour.
He further added, “When we look at three phases of the economic package, they are more of monetary measures which are complemented by some fiscal stimulus. They are more driven by liquidity, loans whereas only some amount of it is direct injection.”
However, Mr. Sondhi expressed his positive views that the core of the Indian economy is still robust. He added, “We expect a bumper rabi harvest and a normal monsoon. We have got healthy forex reserves over $415 billion unlike 2012-13 when the inflation rate was too high. Low crude oil prices and a stable political environment also helps.”
Mr. Sondhi also express his concern on the GST of trucks and Bus segment he said, “When you look at trucks and buses segment, why do the GST rates have to be at par with luxury goods of 28 percent. The GST rates need to aligned and that will be another trigger.”
Commenting on the Modi government’s vision of a self-reliant India, he said “the country needs to create the intellectual property here and use it for the world, emphasising on the need for manufacturing that meets global standards in terms of quality and reliability.”