Lok Sabha Question No. 3351 (UNSTARRED), answered on 2021-03-16
Subject: Slump in Automobile Industry
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 3351

ANSWERED ON 16.03.2021

## SLUMP IN AUTOMOBILE INDUSTRY

## 3351. MS. RAMYA HARIDAS:

Will  the  Minister  of  HEAVY  INDUSTRIES  AND  PUBLIC  ENTERPRISES भारी उद्योग एवं ऱोक उद्यम मंत्री be pleased to state:

- (a) whether the Government is aware that there is a slump in automobile industry in the country in recent years;
- (b) if so, the details thereof;
- (c) whether many car manufacturing units have been closed and there is a reduction in production in the country: and
- (d) if so, the measures taken by the Government to bring improvement in the automobile sector?

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## ANSWER (SHRI ARJUN RAM MEGHWAL)

- (a)  &  (b) :      Yes  Sir,  the  Automobile  industry  has  faced  a  downturn  due  to  COVID  19 pandemic.  However,  sales  in  some  segments,  viz  Passenger  vehicles  &two  wheelers  have improved over the last few months. The details are as under:

Sales of vehicles (figure in thousands)

|                        | October, 2019 - February, 2020   | October, 2020 - February, 2021   |   %change |
|------------------------|----------------------------------|----------------------------------|-----------|
| Passenger Vehicle (PV) | 1235                             | 1386                             |     12.23 |
| Commercial Vehicle(CV) | 195*                             | 193*                             |     -1.12 |
| 3-wheelers             | 278                              | 125                              |    -55.03 |
| 2-wheelers             | 6853                             | 7638                             |     11.45 |

*Data of CV available upto December Source: SIAM

(c) & (d): There is no reduction in production of Passenger Vehicles & 2- wheelers as may be seen from the table  above. PV & 2-Wheelers have shown a growth of 12.23% & 11.45 % respectively during the period October, 2020 - February, 2021 vis-à-vis same duration of the previous year.

The Government, as a policy maker, attempts to keep and improve momentum of the economy through a package of measures for comprehensive and continued development of the industry. Recently the following measures have been announced to support Auto Sector:

i)  Union Cabinet on November 11, 2020 has given its approval to introduce the Production Linked  Incentive  (PLI)  scheme  to  10  specified  key  sectors  including  Automobile  &  Auto Components sectors for a period of five years with a financial allocation of Rs. 1,45,980 crore to enhance India's Manufacturing Capabilities. The automotive industry is a major economic contributor in India. PLI scheme will make the Indian Automotive Industry more competitive and will enhance globalization of the Indian Automotive sector.

ii) Announcement of a voluntary vehicle scrapping policy, to phase out old & unfit vehicles iii) The wholesale, and retail trade and repair of vehicles was brought under the ambit of the MSME Development Act.

iv)  In  Budget  2021-22,  a  scheme  has  been  announced  to  support  augmentation  of  public transport bus services with a total outlay of Rs. 18,000 crore.

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