[sustran] Auto companies seek government help to push demand

[Vinay Baindur]

Handholding for car sales from the govt ? you may well hear of this only in
India!
and including Buses as LCVs just to make it look OK
no,  no one calls it a bailout not surprising
and if the handlholding happens now then sales for the festival season will
pick up slowdown or no slowdown which is what the federation is looking for
Vinay


http://timesofindia.indiatimes.com/city/delhi/Auto-companies-seek-government-help-to-push-demand/articleshow/16346483.cms?

Auto companies seek government help to push demandPankaj
Doval<http://timesofindia.indiatimes.com/toireporter/author-Pankaj-Doval.cms>,
TNN | Sep 11, 2012, 07.33AM IST



NEW DELHI: Amid slowdown, the car industry is demanding a revival package
that includes a cut in excise
duty<http://timesofindia.indiatimes.com/topic/Excise-Duty> and
resumption of government purchases. Industry lobby groupSociety of Indian
Automobile Manufacturers<http://timesofindia.indiatimes.com/topic/Society-of-Indian-Automobile-Manufacturers>(Siam)
said sales have been difficult across various segments of auto industry and
thus a handholding is required from the government to boost volumes and
lift sentiments.

"Times are difficult and we need support. Car sales are under pressure,
two-wheeler sales have gone down and medium-and heavy-duty commercial
vehicle volumes are down. The industry needs urgent help to come out of
this situation," Sugato Sen, senior director at Siam, told TOI here. Sen
added that the industry requires a stimulus package similar to the one
extended in 2008-09 when the global economies, including India, were in a
turmoil, following the collapse of Lehman
Brothers<http://timesofindia.indiatimes.com/topic/Lehman-Brothers> in
the US. An immediate step could be lowering of excise duty on vehicles,
which had gone up in the Budget in March. The budget had upped the excise
duty on small cars and two-wheelers by 2%, while the big cars and SUVs had
seen the duty go up by 5%.

Sen also said the government should reverse its decision of clamping a ban
on purchase of vehicles for its various wings as well as senior officers.
"Central government purchases formed a crucial part of the overall sales.
The purchases were done for top officials, apart from various departments
and ministries, government
hotels<http://timesofindia.indiatimes.com/topic/Hotels-(musician)>,
PSUs, defence and para-military wings etc. These should be revived."

He said the overall sentiments are poor at the moment. "If such measures
are not taken now, it may be difficult for the car companies to carry out
operations. It is difficult to generate demand as interest
rates<http://timesofindia.indiatimes.com/topic/Interest-Rates> and
petrol prices continue to be high at a time when the customer sentiment is
low."

Sen also said the government should come out with the second phase of
the Jawaharlal
Nehru <http://timesofindia.indiatimes.com/topic/Jawaharlal-Nehru>National
Urban Renewal Mission (JNNURM) scheme to promote sales of buses across
cities. "The commercial vehicle industry is also facing the pinch and a
special focus is required to generate demand."