The Society of Indian Automobile Association (SIAM) has informed the Government of India that the production and sales have grown in most of the vehicle segments in the last few years.
The production and sales for 2016-17 (April 2016 to Jan 2017) has grown by 6.05% and 8.00% respectively over the same period in the previous financial year.
The Department of Heavy Industry has not undertaken any study on the impact of demonetization on Auto Sector but the 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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