Maruti Suzuki MD, Kenichi Ayukawa feels that the Government should support the automobile industry to revive the demand.
He also states that the industry has a critical role to play in arresting the slowdown.
Maruti Suzuki MD Kenichi Ayukawa admits that the automobile industry has witnessed a slowdown over the last year. He calls upon the industry as well as the Government to come together and help to revive the market.
Kenichi Ayukawa states that tax deductions in the past had helped the auto industry. He seeks Government intervention in this matter and to do something similar to encourage the market. At the same time, he also urged upon the industry to pitch in with its efforts.
One of the critical demands is the reduction in the GST on new vehicles from 28% to 18%. The auto industry also seeks a vehicle scrappage policy along with the easy availability of credit to the sector. The total automobile sales fell by around 19% with the purchase of passenger vehicles declining by 31% YOY in July 2019.
Maruti Suzuki is trying to encourage demand by introducing new vehicles and offering discounts at the same time. Maruti Suzuki has recently launched its latest MPV, Maruti Suzuki XL6 with prices starting from Rs 9.79 lakhs.
Maruti Suzuki ED, Shashank Srivastava hopes that the festive season will ring in demand. Hence, the focus will be on driving retail sales rather than stocking up inventory in the showrooms. Ayukawa acknowledges that the automobile industry is witnessing a significant shift in technologies, regulations, and policies. He assures that Maruti Suzuki will ensure strict compliance of the same.
Maruti Suzuki has upgraded seven petrol-driven models to comply with BSVI emission norms. It is investing in R&D to increase localisation and introduce new technologies. The company aims to focus on the latest technologies like hybrid and EV, CNG, and other environmentally friendly options.