New Delhi: Union Minister of Commerce and Industry Piyush Goyal on Friday asked the auto sector to go in for ‘smarter pricing’ and offer ‘innovative financing’ terms for buyers to shore-up their sales.
Goyal spoke at the 60th SIAM Annual Convention which was held virtually.
In connection with the industry’s demand for a reduction in GST taxation, Goyal asked the JV auto companies based in India to also ask for a royalty reduction from their parent companies to tide over these testing times.
He also asked the JV companies to seek permission from their parent companies to allow them to export more from India to other countries.
Besides, the Union Minister acknowledged that some sub-segments of the industry have almost reached pre-Covid-levels in August and the overall trend has improved.
According to the minister, the shift towards personal mobility due to the Covid- 19 outbreak will give a push to the industry’s off-take.
He also mentioned the Centre’s resolve to support the industry during these times.
Furthermore, the minister urged the industry to look at higher percentage of import substitution and to increase exports.
He pointed out that the committee for the ‘Remission of Duties and Taxes on Exported Products’ (RoDTEP) scheme might be approached to al low the auto sector get reimbursement of certain taxes to make it more price competitive.
The scheme which is being rolled out in a phased manner allows reimbursement of duties and certain taxes to sectors which have a high export potential.