Road Transport and Highways Minister Nitin Gadkari today acknowledged the slowdown in the automobile industry and said he would urge Finance Minister Nirmala Sitharaman to reduce goods and services tax (GST) rates on vehicles. Speaking at the Society of Indian Automobile Manufacturers' (SIAM) 59th annual convention, the minister also reiterated that the government has no plans to ban petrol and diesel vehicles.
In an interview with CNBC-TV18, Vinod Aggarwal, MD and CEO, Volvo Eicher Commercial Vehicles, shared his views on the slump. “Commercial vehicle (CV) sector is directly linked to the sentiments in the economy. If the economy is down, CV industry has to be down and right now the entire economy is down. Last month was in fact very bad for the industry, the sales of heavy duty trucks were dropped by more than 60 percent and light-medium trucks saw a sales fall of 40 percent. So overall drop has been very significant,” he pointed out.