A parliamentary panel has suggested that the economic slowdown on the back of the COVID-19 pandemic and the resultant lockdown has cost the auto sector nearly 3.4 lakh jobs.
The panel submitted a report to Rajya Sabha Chairman M Venkaiah Naidu and highlighted that the auto sector lost close to Rs 2,300 crore per day during the lockdown.
Moreover, the parliamentary panel recommended a 10 percent GST reduction on new vehicles as well as a GST cut on the used car segment to boost demand.
Motown has seen a recovery in the passenger vehicles and two wheelers segment after the lockdown was lifted, but there were numerous challenges on the horizon. High costs of steel, palladium, rhodium and other raw material, coupled with shortage of semi-conductors, is putting pressure on manufacturing costs and could impact vehicle prices in 2021.
To discuss the impact of the challenges in the sector, Parikshit Luthra spoke to President of ACMA Deepak Jain, FADA President Vinkesh Gulati and Head of Sales and Marketing at Kia Motors Manohar Bhat.
To know more, watch the video.