Automakers in India want a temporary tax cut on cars, trucks and motorbikes as well as incentives to scrap old vehicles, to try to boost sales and generate revenue after the coronavirus outbreak has brought the economy to a standstill.
Companies want a temporary, 10% cut in tax on the sale of all automobiles and auto parts and incentives, in the form of tax rebates, for car owners to scrap their old vehicles, SIAM said in a media statement.The automotive industry is the backbone of India’s manufacturing sector in terms of the employment it generates and its economic contribution.
The coronavirus outbreak has left it in “deep distress”, making financial support and a revival of demand a necessity, SIAM President, Rajan Wadhera said. In common with other industries, auto manufacturing has ground to a halt and car showrooms have been shut since late March when Prime Minister Narendra Modi announced a 21-day lockdown to contain the virus’ spread. The lockdown has been extended until May 3 at least.
The coronavirus is expected to delay the recovery of passenger vehicle sales, rating agency ICRA said in a note, adding that it expects sales to dealerships to decline by 10%-12% in the current fiscal year ending March 2021, after an 18% decline last year. Earlier on Friday, India’s central bank announced measures to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Under Lockdown, Food And Sanitation Products Are Desperately Needed In The Slums Of India80% of India's workers are day laborers. With no safety net, many ran out of food days after lockdown began. Here, the director of The HOPE Foundation, a Kolkata-based NGO, shares her boots-on-the-ground perspective of how COVID-19 is impacting the poorest people in the world -- and how we can help.
Read more »
India March exports shrink, outlook grim as coronavirus hits demandIndia's merchandise exports shrank by more than one-third from a year ago, hit by a fall in global demand and shipments due to the new coronavirus, and analysts warned of a grim outlook for exports in 2020 as global economic activity collapses.
Read more »
Letter From Mumbai: ‘Vogue’ India Editor in Chief Priya Tanna on Finding Hope During the Global Health CrisisMumbai’s spirit and resilience have helped it bounce back from any crisis, natural or manmade. It will do so again.
Read more »
India March exports shrink, outlook grim as coronavirus hits demandIndia's merchandise exports shrank by more than one-third from a year ago, hit by a fall in global demand and shipments due to the new coronavirus, and analysts warned of a grim outlook for exports in 2020 as global economic activity collapses.
Read more »
China March crude oil runs hit 15-month low as refiners extend output cutsChina's daily crude oil throughputs hit their lowest monthly level in March since December 2018 as state refiners maintained deep cuts in production levels as the coronavirus pandemic undercut fuel demand.
Read more »