The Automobile Industry has witnessed a certain slowdown in its sales, in the last one year. Probably, it is for this reason that Patel demanded a case of stimulus for this industry. Indeed, it is very important to accelerate the proceedings of the Automobile Industry, since the government is largely dependent on the revenue generated by this segment. The article below throws more light on the same.
Keeping in mind the gradual slack in the Automobile Industry, the Heavy Industries Minister Praful Patel said that he would be taking a delegation of the Industry to the finance Minister P. Chidambaram and Prime Minister Manmohan Singh, to discuss a probable stimulus for it. A case of stimulus has been considered for the Automobile Industry, since the sales have gone down, in the last few months. Patel reported, “I am in constant touch with the government. Also in the days, I am going to arrange a meeting of the entire auto sector – Society of Indian Automobile Manufacturers (SIAM) and other stakeholders – with the Prime Minister and the Finance Minister so that the industry is able to express its concerns and I am sure we will find a way forward.” It is to be kept in mind that the slowdown in the industry, has affected several other factors. For instance, there has also been a gradual fall in the number of jobs that the Industry has been creating for individuals.
It was at the SIAM’s annual convention that Praful Patel expressed his views, regarding the Industry. Patel further said that the increased interest rates were adding to the woes of the Automobile industry. The high interest rates have indeed affected the purchasing potential of the middle class families since the EMIs that they pay, is directly linked to these rates. It has indeed been a roller coaster ride for the Automobile Industry. While Mahindra, Toyota and TATA motors have seen a fall in their sales, companies like Hyundai, Honda and Maruti Suzuki have reported cases of increased sales in the last quarter of 2013.
According to news reports, the four wheelers have suffered a setback compared to the two wheelers. Scooter India and Honda Motorcycle have both seen an increase in their sales, in the last quarter of the year. According to the data reports of SIAM, car sales in the country, however, fell for record nine months in a row in July, declining 7.4 percent, as the economic slowdown and low consumer sentiment hit demand. Vehicle sales across all categories dropped 2.08 percent to 14,15,102 units in July 2013 from 14,45,112 units a year earlier. Probably, even SIAM just like the NCP Leader Praful Patel wants a stimulus package for the Automobile sector, if the problems can be resolved through it.
It was in 2008-09, when that the excise duty on scooters, bikes and small cars was brought down to 8%. Something similar, during this financial year, shall do a world of good to the industry. The whole scheme would not only up the ante for the Automobile segment, but it would also curb the economic slowdown that India has been experiencing, now and often.
Praful Patel’s contributions towards the growth of this Industry from here on shall be pivotal. It is to be noted that the Automobile segment is in fact the largest employer of the nation, providing individuals with plenty of job opportunities. Furthermore, it also contributes around 25 percent of the manufacturing GDP. In such situation, Patel’s idea of providing stimulus to the Automobile Industry stands justified without a second though.
The Heavy Industries Minister Praful Patel also promoted Diesel as a future fuel on the annual convention of SIAM. For more information on this minister, follow Praful Patel’s YouTube and Facebook account.