The auto industry hit by unprecedented slowdown; 'hope' from the Modi Government!
Thursday - July 25, 2019 2:27 pm ,
Category : WTN SPECIAL
Nearly one million people in the auto sector can be unemployed
Country's auto industry needs 'support'
JULY 25 (WTN) - Getting jobs in a country with a large population like India is a difficult task in itself. Forget about getting a government job; nowadays, there is a though competition for private jobs. However, even if you get a private job, then there is always danger that the company does not take out of you from the job for some reason. Some such happenings may occur in the auto industry and related industries in the coming years, nearly 10 lakh people may have to be unemployed due to continuous recession in the sector and declining of the production.
For your information, let you know that the Indian auto industry is facing unprecedented slump this time. Statistics show that the decline in sales of vehicles of every category has been seen in the last few days. As you know, industries that make auto parts depend on the auto industry itself. Now that there is a decrease in sales of vehicles, its direct impact is on the automotive industry, and there is also a slowdown.
Due to non-sale, auto companies have cut their production by 15 to 20 per cent. In this case, it also directly hit on the auto parts industry. If the sales of vehicles continue to fall in the same way, about 10 lakh people can be unemployed in the auto industry and auto parts industry in the coming time.
Indeed, the auto industry experts say that there are many reasons for the reduction in the sales of vehicles, due to which the upturn in the sales of vehicles is not being seen. The first reason is that at this time there has been stagnation in the sales of cars and bikes in India, because bikes are presently in almost every house and those with little financially empowering have a car. There is a time in every country where after a wildly selling of cars and bikes, a slowdown is seen.
People associated with the auto industry say that the Modi Government should take some steps to speed up the sales of vehicles. Under this, the rate of GST for the auto sector should be equal to 18 per cent. For your information, let you know that 70 per cent of the auto parts goods are taxed at 18 per cent in GST. On the remaining 30 per cent of the parts, GST is at 28 per cent. At the same time, with 28 per cent GST on vehicles. 1 to 15 per cent cess is imposed, and it depends on the length of vehicle and the length and category of the engine.
The auto industry has demanded that if the Modi Government equals the GST rate at 18 per cent in the auto sector, then it will rejuvenate the auto industry and lakhs of people will not be unemployed. Well, for your information, let you know that due to the slowdown in auto industry and auto parts industry, employees have started sorting out here, and if the Modi Government did not provide relief to the auto industry during the time, then about 10 lakh people can be unemployed.
Indeed, there are many reasons for recession in the auto industry. The first reason is that there has been stability in the sales of vehicles in India. At the same time, customers are now looking at buying a car for the Bharat Stage-6 Emission Standards. At the same time there is no clear time limit and clarity regarding the government's e-Vehicle policy, which has prevented all future investments in this sector. There will be adverse impact on the auto industry in the coming of e-vehicle, due to which millions of people from auto industry will be unemployed.
If the auto industry thinks that by gifting the GST rate uniformly by the Modi Government there will be increasing in the sales of vehicles, then Modi Government should seriously consider this demand of the auto industry. That's why, because if the auto industry does not bounce, millions of people will be in danger of getting unemployed from the auto sector and auto parts sector. It is true that there is a recession in the auto industry this time, but in the coming time, there is hope that once again this sector will bounce and the sales of vehicles will be faster, but the auto industry and the Government both will have to take some positive steps for this.
JULY 25 (WTN) - Getting jobs in a country with a large population like India is a difficult task in itself. Forget about getting a government job; nowadays, there is a though competition for private jobs. However, even if you get a private job, then there is always danger that the company does not take out of you from the job for some reason. Some such happenings may occur in the auto industry and related industries in the coming years, nearly 10 lakh people may have to be unemployed due to continuous recession in the sector and declining of the production.
For your information, let you know that the Indian auto industry is facing unprecedented slump this time. Statistics show that the decline in sales of vehicles of every category has been seen in the last few days. As you know, industries that make auto parts depend on the auto industry itself. Now that there is a decrease in sales of vehicles, its direct impact is on the automotive industry, and there is also a slowdown.
Due to non-sale, auto companies have cut their production by 15 to 20 per cent. In this case, it also directly hit on the auto parts industry. If the sales of vehicles continue to fall in the same way, about 10 lakh people can be unemployed in the auto industry and auto parts industry in the coming time.
Indeed, the auto industry experts say that there are many reasons for the reduction in the sales of vehicles, due to which the upturn in the sales of vehicles is not being seen. The first reason is that at this time there has been stagnation in the sales of cars and bikes in India, because bikes are presently in almost every house and those with little financially empowering have a car. There is a time in every country where after a wildly selling of cars and bikes, a slowdown is seen.
People associated with the auto industry say that the Modi Government should take some steps to speed up the sales of vehicles. Under this, the rate of GST for the auto sector should be equal to 18 per cent. For your information, let you know that 70 per cent of the auto parts goods are taxed at 18 per cent in GST. On the remaining 30 per cent of the parts, GST is at 28 per cent. At the same time, with 28 per cent GST on vehicles. 1 to 15 per cent cess is imposed, and it depends on the length of vehicle and the length and category of the engine.
The auto industry has demanded that if the Modi Government equals the GST rate at 18 per cent in the auto sector, then it will rejuvenate the auto industry and lakhs of people will not be unemployed. Well, for your information, let you know that due to the slowdown in auto industry and auto parts industry, employees have started sorting out here, and if the Modi Government did not provide relief to the auto industry during the time, then about 10 lakh people can be unemployed.
Indeed, there are many reasons for recession in the auto industry. The first reason is that there has been stability in the sales of vehicles in India. At the same time, customers are now looking at buying a car for the Bharat Stage-6 Emission Standards. At the same time there is no clear time limit and clarity regarding the government's e-Vehicle policy, which has prevented all future investments in this sector. There will be adverse impact on the auto industry in the coming of e-vehicle, due to which millions of people from auto industry will be unemployed.
If the auto industry thinks that by gifting the GST rate uniformly by the Modi Government there will be increasing in the sales of vehicles, then Modi Government should seriously consider this demand of the auto industry. That's why, because if the auto industry does not bounce, millions of people will be in danger of getting unemployed from the auto sector and auto parts sector. It is true that there is a recession in the auto industry this time, but in the coming time, there is hope that once again this sector will bounce and the sales of vehicles will be faster, but the auto industry and the Government both will have to take some positive steps for this.
