In order to stimulate demand and help save around 10 lakh jobs, Auto Component Manufacturers Association of India (ACMA) has sought reduction in the Goods and Services Tax (GST) rate to a uniform level of 18% for the entire automobile industry. The industry body also sought clarity on policy for electrification of vehicles.
ACMA President Ram Venkataramani underlined that the automotive industry is facing an unprecedented slowdown. Vehicle sales in all segments have continued to plummet for the last several months. He also said that considering the auto component industry grows on the back of the vehicle industry, a current 15-20% cut in vehicle production has led to a crisis-like situation and if the trend continues, an estimated 10 lakh people could be laid off.
Venkataramani expressed need for urgent government intervention. Besides, he said that any further changes in targets for rollout of EVs would increase the country's import bill and damage the current components manufacturing ecosystem.