Shares of auto makers advanced after Union Minister Nitin Gadkari said the government has no intentions of banning the production or stopping the existing petrol and diesel-fuelled vehicles.
The S&P BSE Auto index was up 1.76% to 15,508.35. The S&P BSE Sensex was down 90 points or 0.24% to 36,635.22.
Tata Motors (up 5.35%), TVS Motor Company (up 2.28%), Mahindra & Mahindra (up 2.18%), Escorts (up 2.04%), Maruti Suzuki India (up 1.87%), Bajaj Auto (up 1.35%), Ashok Leyland (up 1.04%), Hero MotoCorp (up 0.89%) and Eicher Motors (up 0.51%) advanced.
Nitin Gadkari, Minister of Road Transport and Highways of India, attended the Society of Indian Automobile Manufacturers (SIAM) annual convention. The minister said the government was well aware of the contribution that India's automobile industry was making to the country's exports and employment.
He added that the auto industry has sought a relaxation of GST on vehicles due to the extra cost incurred for the transition from BS-IV to BS-VI compliant engine. He said that he will convey this to finance minister Nirmala Sitharaman and the government may consider the reduction of GST temporarily.
Gadkari, however, highlighted three major challenges import of crude, pollution and road accident the government is currently facing with the automobile sector.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app