[sustran] Re: Auto companies seek government help to push demand

[ashok datar]

even thinking of providing concessions to automobiles in India as most of
them end up in cities becoming second and third car within a family and now
mostly diesel so as to increase the subsidy burden ( not to speak higher
congestion and pollution )
it is akin to provide subsidy for supporting the sales of whiskey and
cigarettes
ashok datar

On Tue, Sep 11, 2012 at 10:07 PM, Vinay Baindur <yanivbin at gmail.com> wrote:

> 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."
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-- 
Ashok R.Datar
Mumbai Environmental Social Network
20 Madhavi, Makarand Society, S.V.S.Marg, Mahim-400 016
98676 65107/0222 444 9212 see our website : www.mesn.org

* I hear, then I forget.  I see, then I remember. I do, then I understand.*