The Centre on Thursday promised support to the Covid-19 hit auto industry after the lifting of the lockdown. It also assured the industry that its suggestion for online registration of the BS-IV vehicles (sold till March 31) till May 30 will be considered.

Minister of Heavy Industries and Public Enterprise Prakash Javadekar held a video-conference with auto industry leaders, where it was observed that the sector has to be brought back “on the wheels”, considering its significance to the Indian economy.

“There were many discussions and demands of GST cuts, employment support, retail sales support, supplier support and liquidity support. Naturally...what the industry has gone through...they have put up demands,” Javadekar said.

He acknowledged that the auto industry has been among the largest contributors to the GDP, and a significant exporter and tax payer.

“This industry is important...Last year it suffered due to the planned shift to BS-VI-compliant vehicles...this change also made customers nervous,” he said, adding that it induced them to postpone purchases.

The industry leaders suggested that once the lockdown is lifted and manufacturing is resumed, the workers should be tested to rule out infection. They also recommended online registration of new vehicles, sanitisation of selling points and maintenance of a 6 ft distance so that the buyer is assured of safety and hygiene.

“There were comprehensive suggestions and I will discuss all these suggestions with the respective Ministries such as Transport Ministry, Commerce Ministry, Finance Ministry and many other related departments,” Javadekar added.

Sources privy to the meeting told BusinessLine that the industry leaders also suggested the opening up of the entire value chain in unison — including the steel and transport sectors — so that the components and finished goods can be transported seamlessly.

Also, they asked the government to provide clarity on challenges that may come up, such as what a company should do if the place where its factory is located is deemed a ‘red zone’.

Further, they said, the industry at this juncture requires some kind of a financial package, as it is paying full salaries to its workers. They also demanded a reduction in GST for two-wheelers, which is at 28 per cent, the sources added.

The industry leaders who attended the meeting include Kenichi Ayukawa, MD and CEO, Maruti Suzuki; Pawan Goenka, MD, Mahindra & Mahindra; Pawan Munjal, CMD, Hero MotoCorp; SS Kim, MD and CEO, Hyundai Motor India; Rajan Wadhera, President, SIAM; and Deepak Jain, President, ACMA.

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