Ashok Leyland, India’s commercial vehicle manufacturing major is suspending production in many unites, as the automotive sector is not showing any sign of growth. Not only The Automobile industry but also many others like FMCGs are on the verge of letting the workforce due to the economic crisis.
Big players like Maruthi and Tata Motors are also announcing production cuts since the slowdown in economy. The demands of Automobile industry in increasing to build their stature back again.
Finance Minister Nirmala Sitharaman said that the government would address the demands of the industry, as the industry almost collapsing.
The Minister in 100 days of Modi’s 2.0 said that govt is conscious about the need to respond, call would be taken by the GST Council at its meeting in Goa next week. She added that some of the industry suggestions had already been considered.
company's demand for tax reduction is expected to be put forth at the Council meeting next week and decision will be taken later.
"We are working with all the sectors across the country to understand the problem and taking measures also. This government listens to everyone and we are also taking measures. Two major announcements were made in August and September and two more are expected", she said.
The Indian government is however shifting towards EVs, even though this seems hard in case of adaptation, experts believe that this might lead to fall in vehicle sale.
The sales had already dropped by 41%, an abrupt collapse in over the decades. Being one of the biggest industries involving more than 35 million people is contributing up to 7 % of GDP. But the industry is now forcing lower production and letting many of the employers go.