Auto industry bats for continuation of excise cut

SIAM also seeks new foreign trade policy, enhanced export incentives for vehicles

A senior-level delegation lead by Kirloskar Brothers director Vikram Kirloskar held meetings with ministers of Commerce, Road Transport, Environment and Heavy Industries to discuss measure to boost the auto sector.

Kirloskar who is also the president of the Society of Indian Automobile Manufacturer (SIAM) sought the continuation of reduced excise duty on vehicles, apart from seeking a new foreign trade policy and enhanced export incentives for vehicles.

"The objective of these meetings was to apprise the ministers of the current status and challenges being faced by the auto industry", a release from SIAM stated .

The SIAM delegation also highlighted the potential of the industry to contribute to the growth of manufacturing, exports and the economy as a whole, including rural sector.

Streamlined and free inter-state movement of vehicles, promotion of electric and hybrid vehicles and prevention of overloading, encouraging alternative-fuel vehicles, enhancing road safety, emission and fuel efficiency norms, fleet modernisation and scrappage policy, were some of the issues raised by the body.

"We were very encouraged by the response of all the ministers and feel confident that the government will take a clear and holistic view of the automotive industry and work towards creating an enabling stable policy framework to ensure sustained growth of the auto industry," Kirloskar said in a statement.