The auto industry on Friday said it is not ready for further regulations, planned for 2020-23, as these would require more investments that it cannot come up with now due to the pandemic.
Making a request to the government, Rajan Wadhera, President, Society of Indian Automobile Manufacturers (SIAM), said the industry has already invested significantly in six emission norms and for meeting various new safety regulations.
However, it has not begun to realise revenues due to lack of consumer demand. So, the industry does not have the ability to invest further in new regulations which are planned for the next three years, such as the new corporate average fuel economy (CAFE) norms, he said.
"We make a strong plea and request to you that the industry is not in a position to invest in new regulations like CAFE,” Wadhera said at the 60th SIAM annual convention.
Speaking to Prakash Javadekar, Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises, at the opening session of the convention, Wadhera said the government should provide the required push for consumers to come back to the dealerships.
The auto industry has also been demanding tax incentives, including reduction of GST on vehicles.
The industry has just started sees some improvement in sales, since August, after the pandemic began to hit production and sales in April. With the festival season kickstarting, the industry wants the government to provide some quick relief on taxes so that there are more footfalls at the showrooms.