In a rare bully off , captains of the auto industry have hit out at the govt for not walking the talk. At an industry event within the capital on Wednesday, R C Bhargava, chairman of India’s largest carmaker Maruti Suzuki, and Venu Srinivasan, chairman of TVS Motor, questioned the government’s intent to support the auto sector. Revenue secretary Tarun Bajaj sat within the audience listening, before his turn came to counter them.
Calling for a discount in taxes, the auto majors expressed frustration that the contribution of the industry towards India’s growth was perhaps not being recognised by policymakers as cars were still being considered a luxury only the rich can afford.
“There are tons of statements made on the importance of the auto industry. But in terms of concrete action, which might reverse the decline in trend, i have never seen any on the bottom . i’m afraid words aren’t getting us considerably in terms of additional sales,” said Bhargava.
It was seemingly directed at Bajaj, who, as head of the Department of Revenue, exercises control associated with direct and tax of the union.
Manufacturers (Siam) said the general auto volumes in 2020-21 (FY21) within the domestic market pushed the industry back by six years. Passenger vehicle volumes in FY21 were rock bottom since 2015-16; two-wheeler volumes rock bottom since 2014-15.
Sales of economic vehicles in FY21 were the worst in 11 years; for three-wheelers, they were rock bottom in 19 years. Siam blamed the increased cost of ownership thanks to the high goods and services tax (GST) and a hike in road tax because the killjoys.
Srinivasan echoed Bhargava, saying while India’s two-wheeler industry is that the largest within the world and largely considered a standard man’s mode of transport, the GST rates are almost like those for luxury cars.
“The price of the moped has gone up 45-50 per cent. The GST on two-wheelers is that the same as a luxury-level product. is that the auto sector being recognised for what it’s contributed to the environment, to revenue, and to exchange earnings? that’s the question R C Bhargava has raised,” said Srinivasan.
When his turn came, Bajaj asked if taxation was the rationale why industry growth was impeded. “I want to know , before GST came, what was the taxation structure in large auto markets? Was the taxation structure any lesser? i feel it’d are a touch higher. we will not decrease taxes without knowing whether which will actually cause a corresponding increase in auto sales,” he said.
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