Lok Sabha Question No. 2005 (UNSTARRED), answered on 2017-03-14
Subject: Production and Sales of Auto Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: RABINDRA KUMAR JENA

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO.2005 TO BE ANSWERED ON 14.03.2017

## Production and Sales of Auto Sector

## 2005. SHRI RABINDRA KUMAR JENA:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) whether the growth rate of production and sales of the auto sector have increased during the last three years in the country;
- (b) if so, the details thereof;
- (c) the growth rate of exports and imports of the auto and auto components sector during the said period;
- (d) whether demonetization has impacted the production and sale of auto sector;
- (e) if so, the remedial steps proposed to be taken by the Government in this regard; and
- (f) the various initiatives being taken by the Government to boost this sector?

## ANSWER

## MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a) & (b):  Society  of  Indian  Automobile  Association  (SIAM)  has  informed  that  the  production and sales have grown in most of the vehicle segments in the last few years. The detail growth in production and sales in the last three years and the current year is as under:
- (c): The growth rate of export & imports of the auto & auto components are the following:

| Financial Year             | Growth Rate   | Growth Rate   |
|----------------------------|---------------|---------------|
|                            | Production    | Sales         |
| 4.13%                      | 3.54%         | 2013-14       |
| 8.64%                      | 7.06%         | 2014-15       |
| 2.58%                      | 3.78%         | 2015-16       |
| 2016-17 (April,16 -Jan,17) | 6.05%         | 8.00%         |

## Auto Sector:

| Financial Year   | Export   | Import   |
|------------------|----------|----------|
| 8.1%             | -51.7%   | 2013-14  |
| 11.5%            | 1.6%     | 2014-15  |
| -0.5%            | 0.9%     | 2015-16  |

(Sources: SIAM)

## Auto Components Sector:

| Financial Year   | Export   | Import   |
|------------------|----------|----------|
| 2013-14          | 16.7%    | 3.6%     |
| 2014-15          | 11.4%    | 7.5%     |
| 2015-16          | 3.5%     | 9.3%     |

(Sources: ACMA)

(d) & (e): Department  of  Heavy  Industry  has  not  undertaken  any  study  on  the  impact  of demonetization on Auto Sector.

- (f): Government of India is working with the auto industry on many initiatives to give boost to the automotive industry. Some of the initiatives are listed below:-
- (i) Automotive  Industry  is considered a sunrise sector  of  the  economy  and  the Government's policy towards the industry has been to provide market access to all players globally, through investment route than the trade route.
- (ii) Government  has  supported  Industry  through  dedicated  policy  for  the  industry  by launching Auto Policy 2002, Automotive Mission Plan 2006-16, Automotive Mission Plan 2016-26.
- (iii) A new scheme Faster  Adaption  &  Manufacturing  of  (Hybrid  &)  Electric  Vehicles (FAME India) has been launched. This scheme provides benefit to electric & hybrid manufacturers  to  help  increase  penetration  of  environment  friendly  products  in  the country.
- (iv) Automotive  Industry  has  been  identified  as  one  of  the  champion  sectors  and  the Government is working on interventions in specific areas such as incentive, access to credit,  low  cost  power,  infrastructure,  R&D,  technology  linkages  and  care  during trade negotiations for development of the Industry.
- (v) Automotive  Industry  has  identified  20  tariff  headings  as  sensitive  items  for  the industry which have been maintained in the negative list of India in most of the trade agreements.
- (vi) Automobile  manufacturers  get  benefit  of  2%  Mechanise  Export  Incentive  Scheme (MEIS) on vehicle exports.

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