Despite growth in sale of auto parts, manufacturers cry for corrective measures

  • Arjun Sharma,, Ludhiana
  • Updated: May 19, 2015 08:53 IST

Even as sales as well as production of most of the segments of vehicles in the country has increased, auto parts manufacturers in Ludhiana have raised concern over reduction in sale tax, quoting a report of Society of Indian Automobile Manufacturers (SIAM) for April this year.

SIAM keeps a tab on sale, production as well as exports of vehicles manufactured in India.

Upkar Singh Ahuja, general secretary of Chamber of Industrial and Commercial Undertaking (CICU), in a statement on Monday said decline noticed from the figures in April released by SIAM was a cause of concern for the automotive and auto-components manufacturing industry.

On the other hand, Avtar Singh, who is the president of the association, said, "Automobile industry is the backbone of engineering industry and number of industries, including steel, machine tools and transport, These industries are highly dependent on the growth of automotive industry.

Both the auto parts manufacturers also urged the Centre to take corrective measures for improvement in the auto parts industry. CICU leaders demanded that there should be reduction of 4% on excise duty on the sale of auto components.

Upkar said the report of SIAM stated that "The industry produced more than 19 lakh vehicles, including passenger vehicles, commercial vehicles, three-wheelers and two-wheelers in April 2015 as against 18 lakh in April 2014, registering a marginal growth of 2.55% over the same month last year."

He further quoted "Three-wheelers sales declined by -2.33% in April 2015 over the same month last year. Passenger carriers and goods carriers declined by -2.68% and -1.05%, respectively in April 2015 over April 2014."

He added two-wheelers sales registered de-growth of -0.16% in April 2015 over April 2014. Within the two-wheelers segment, scooters, and mopeds grew by 5.38% and 9.88%, respectively while motorcycles dropped by -2.77% in April 2015 over April 2014.

Although the manufacturers quoted de-growth in sales of three-wheelers and two-wheelers for April only, total sale of both the segments has significantly increased from the past several years as per the data of SIAM.

Even passenger vehicles sale have witnessed an increase as compared to last year. While in year 2013-14, number of passenger vehicles sold was 2502509, the number of vehicles sold in year 2014-15 was 2601111.

An excise official, on anonymity, said most of the industrial groups keep on pressurising the state and central governments by quoting specific figures and not the complete data. He said this was done basically to show that there was little or no industrial growth.

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