Patel for stimulus for auto industry, cut in excise duty

Patel has written to the finance minister to cut excise duty on commercial vehicles from 12% to 8% immediately

Concerned over the prolonged fall in auto sales, Heavy Industries Minister Praful Patel on Thursday asked for a cut in excise duty on commercial vehicles, as part of a stimulus package.

"It is very important that we have a stimulus package for the entire automobile industry. All segments of the industry are facing slowdown. In some cases, even a reduction in the figures of production. So, this is not a happy sign," he said at the Auto Expo here. Patel said he had spoken to Finance Minister P Chidambaram and would be "meeting him over the next few days to seek what best we can do".

Patel has written to the finance minister to cut excise duty on commercial vehicles from 12 per cent to eight per cent immediately.

Annual car sales in India declined for the first time in 11 years in 2013, posting a 9.59-per cent dip, as the auto industry reeled under a prolonged demand slump .

"It is important that we take right measures and give the right incentives. I have been in constant engagement with the Ministry of Finance to see that we are able to bring some kind of energy or stimulus to this entire sector," Patel said.