No special package for auto sector this fiscal: Deshmukh

The government today ruled out any special package for the automobile sector, which has taken a hit due to the global slowdown first and then poor monsoons in the country.

"We have given whatever we can this year to the automobile industry (by way of duty relief) and see what can be done when the next Budget is presented," Heavy Industries Minister Vilasrao Deshmukh told reporters on the sidelines of the SIAM annual convention here.

Asked about the government's estimate of automobile growth this year, he replied, "I think the growth rate at which they (auto industry) are looking at ... But again because of the drought I am still afraid what could be the impact."

 

"Overall economy will slowdown particularly the rural economy so naturally the sales of two-wheelers and other medium vehicles will be hit," he said.

Asked about the government's plan to set up an automobile design institute, he said that the matter is "under the planning stage and soon we will do it, because for the heavy designing we have to go to foreign countries."

This would be a common facility for all manufacturers, he added.