Govt will take care of auto industry's concerns, says Industries Minister

The assurance from Anant Geete comes at a time when the car manufacturing industry is under pressure from courts on diesel pollution issues

The Union government on Tuesday assured the automobile industry that it will take all required action to support the industry's interests and growth. The assurance comes at a time when the car manufacturing industry is under pressure from courts on diesel pollution issues.

“The industry is having to face many challenges. The government is with the industry and it will take all the actions to support the sector. All the concerned ministries are talking in one voice on the issues,” Anant Geete, union minister for heavy industries and public enterprises, said at an event of the Automotive Component Manufacturers Association (Acma). 

In December last year, the Supreme Court banned sales of diesel vehicle with engine capacity of 2,000 cc and above in the national capital region to control pollution. The ban lasted for almost eight months and was eased on August 12 after manufacturers agreed to pay a one per cent green cess on ex showroom price of vehicles. The ban impacted players like Toyota and Mercedes severely. 

Geete said the government is also concerned about environment and pollution. "We will promote hybrid and electric vehicles with incentives", he said. 

On GST, he said the new taxation system is expected to come into effect from next financial year and automobile industry will be one of the biggest beneficiaries.