India's COVID-19 Wave Hinders Auto Industry

Researched by Industrial Info Resources (Sugar Land, Texas)--India's automobile industry, a major contributor to the country's GDP and employment, has been weakened by the COVID-19 crisis for the second consecutive year. As per the Society of Indian Automobile Manufacturers' (SIAM) estimates, the auto industry lost money for every day of closure during lockdown.

Taking a sign from global measures and analyzing the industry's demands, the Indian government must look into problems of this industry and introduce a robust post-crisis stimulus plan to revive the auto industry, particularly aimed at demand creation in the market, before it is too late.

Indian automakers are demanding bold fiscal measures such as a reduction in the Goods and Services Tax on vehicles and components; reducing taxes on R&D activities; introduction of an incentive-based scrappage policy; extension of the moratorium on loan payments to three months, which was announced by the Reserve Bank of India to be further relaxed to at least a year; extension of the vehicle depreciation benefit to fiscal-year 2021; a priority tag for the auto sector for a period of 12 months; and extension of the validity for selling Bharat Stage-IV-emission vehicles.

Industrial Info is tracking 1,573 operational automotive plants in India with 5,904 functional management contacts. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Plant Database can click here for a list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.