Auto firms seek policies to make vehicles cheaper

Speaking at the annual convention of Society of Indian Automobile Manufacturers (Siam), senior executives at top automakers said that such a move would help the industry stage a recovery in sales, especially of passenger cars and two-wheelers.

India’s automobile industry on Wednesday asked the government to frame policies that would make vehicle purchases more affordable for customers in a bid to revive sales, impacted by factors such as high prices and the Covid pandemic.

File photo: Cars are seen parked at Maruti Suzuki's plant at Manesar. (REUTERS)

Speaking at the annual convention of Society of Indian Automobile Manufacturers (Siam), senior executives at top automakers said that such a move would help the industry stage a recovery in sales, especially of passenger cars and two-wheelers.

The outbreak of the pandemic from March 2020 led to a double-digit decline in sales in FY21.

R.C. Bhargava, chairman of Maruti Suzuki, said automobile sales have been declining before the outbreak of the pandemic and not many policy measures have been announced to arrest the decline.

“We have to take into account the economic status of people of India. I don’t think the industry will revive, be it internal combustion engine or electric, unless we tackle the question of affordability of customers,” he said.

He said new regulations like BS-VI have added ₹22,000 to the cost of an entry-level car like Alto.

This coupled with taxes imposed by states have made the increase substantial for a price-sensitive customer.