Hit hard by the ongoing economic slowdown, the automobile industry is pinning hopes on the upcoming Budget to revive fortunes. The industry has demanded more sops for electric vehicle, increased rural spending and more disposable income in the hands of people.
“The auto sector is in bad shape. No auto manufacturer is working in full capacity because of lack of demand. If vehicles are not selling, companies will not invest in expanding their capacities. Unless there is more disposable income in the hands of people, they will keep on suspending their buying decisions,” said Vikram Kirloskar, Toyota Kirloskar Motor vice-chairman and president of industry body CII. The next big challenge for the auto Industry, he said, will be the transition from BS-4 emission norms to BS-6, due in April 1, 2020.
