The Federation of Automobile Dealers Association, the primary body for auto dealers across the country has reiterated its demands for measures to safeguard to the automotive retail industry during the COVID-19 lockdown period as well as post the lockdown period.
Writing to the PM, FADA said that the auto industry has been one of the hardest hit in the crisis and among those in this field, it was the vehicle dealers who had taken the biggest hit. They have called for working capital support, payment of employees’ salaries via ESIC and grant of MSME to auto retail as temporary measures to keep the industry afloat.
They have also asked the Centre to reduce GST for a temporary period and extended depreciation benefits for FY21. Another demand of the FADA, which could have a long term impact, is an effective scrappage policy to stimulate demand. The Centre had announced that it was working on a scrappage policy with a policy note that had been issued in 2016. Finally, they have also called for the Government to include Auto Industry in Priority Sector lending so that both retail and wholesale financing can be made available easily.
SIAM has projected that the country will witness a huge drop in auto sales which could be as high as 35 per cent for some segments. This is over and above the 18 per cent de-growth of FY20.
