Lok Sabha Question No. 2366 (UNSTARRED), answered on 2021-03-09
Subject: High Revenue Losses in Automobile Industry
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Y. S. Avinash Reddy, Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 2366

ANSWERED ON 09.03.2021

## HIGH REVENUE LOSSES IN AUTOMOBILE INDUSTRY

## 2366. SHRI Y.S. AVINASH REDDY: SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

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

- (a)  whether  the  Government  has  taken  note  of  the  high  revenue  losses  being  suffered  by  the Automobile Industry in the country;
- (b) if so, the details thereof;
- (c)  whether the Government has received any representation from All India Automobile Industry Association  urging  the  Government  to  come  to  their  rescue  in  the  wake  of  rampant  spread  of COVID-19 in the country;
- (d) if so, the details of the concessions and exemptions sought for their survival; and
- (e) the steps being taken by the Government in this regard?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

- (a) & (b): The sales in some segments of the Automobile industry has improved over last few months.  The details are as under:

## Sales of vehicles

| Category            | Year    | Oct               | Nov               | Dec               | Jan       |
|---------------------|---------|-------------------|-------------------|-------------------|-----------|
| Passenger vehicle   | 2019-20 | 271,737           | 253,139           | 222,728           | 248,840   |
| Passenger vehicle   | 2020-21 | 310,294           | 264,898           | 252,998           | 276,554   |
| Commercial vehicles | 2019-20 | 195,211 (Oct-Dec) | 195,211 (Oct-Dec) | 195,211 (Oct-Dec) | NA        |
| Commercial vehicles | 2020-21 | 193,034 (Oct-Dec) | 193,034 (Oct-Dec) | 193,034 (Oct-Dec) | NA        |
| Three- wheelers     | 2019-20 | 66,985            | 55,778            | 53,795            | 60,903    |
| Three- wheelers     | 2020-21 | 26,187            | 23,626            | 22,126            | 26,335    |
| Two-wheelers        | 2019-20 | 1,757,180         | 1,410,939         | 1,050,038         | 1,341,005 |
| Two-wheelers        | 2020-21 | 2,053,814         | 1,600,379         | 1,127,917         | 1,429,928 |

Source: SIAM

(c)  to  (e):          Yes,  a  few  representations  have  been  received  from  Society  of  Indian  Automobile Manufacturers (SIAM) seeking support.  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 whole sale, and retail trade and repair of vehicles was brought under the ambit of the MSME Development Act.

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

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