The Indian automobile industry is not yet ready to do without government help. The President of the Society of Indian Automobile Manufacturers (SIAM), Mr Pawan Goenka, told media persons last week that the auto industry still needed incentives and stimulus from the government, to keep growing. Regarding the lowered excise rates, Goenka said that just because passenger car makers had managed to reverse the slowdown, the government should not take back what helped reverse it. The Indian auto industry is one of the few in the world which has managed to grow in spite of the economic slowdown, partly because of the stimulus packages announced by the government. However, to continue the upward trend, the auto industry hopes to continue receiving government aid.

Meanwhile, SIAM also asked the government to introduce scrappage incentives for vehicle owners who replace their old vehicles with new ones, similar to the schemes launched by European nations. The organisation suggested that incentives be given for the replacement of all vehicles that are at least 15 years old, in the form of 50 per cent rebate on excise and sales tax. This will not only stimulate demand for new vehicles, but also help reduce air pollution.

Courtesy: www.driveinside.com