New Delhi (NVI): No confirmed data on job loss in automobile sector is available with the Government and only retrenchment of temporary workforce in the sector has been reported, Rajya Sabha was informed today.
There are cyclical slowdowns in many economies. 11.7 million vehicles of all categories were sold during the period of April to September 2019 as against 14.1 million vehicles sold during the same period in previous year.
But the festival demand has shown year on year growth at 0.3% in the Passenger Vehicle Segment, Minister of Heavy Industries and Public Enterprises Prakash Javadekar said in a written reply.
Retrenchment of temporary workforce has been reported by the industry. However, no confirmed data on job loss is available with the Government.
The Government, as a policymaker, always attempts to keep and improve momentum of the economy through a package of measure for comprehensive and continued development of the auto sector as and when required.
Government has taken some steps to counter automotive slowdown like reduction in corporate tax to 22%, continuation of registration of ICE and EV in future, scrappage policy under consideration, proposed increase in registration of new cars deferred till June 2020, funds worth Rs. 70,000 crores released to PSU banks and inking of repo rate to interest charged for vehicle purchased
As per the industry estimates, contribution of passenger vehicles to the Gross Domestic Product (GDP) has varied between 2.1% to 2.9% and the contribution of the Automotive Sector as a whole to GDP has varied between 6.0% to 7.2% from 2010-11 to 2018-19.
Automotive Mission Plan
For the next decade 2016-26, another Automotive Mission Plan 2026 has been finalized jointly by the Government of India and Indian automotive industry, Prakash Javedkar informed Rajya sabha.
The Automotive Mission Plan (AMP) 2006-16 taken up jointly by Government of India and the India automotive industry has been largely successful in its endeavor to lay down the roadmap for development of the industry, Prakash Javadekar said in an another written reply.
India has attracted significant quantum of investments from global and local original equipment manufacturers (OEMs) as well as component manufacturers, exceeding the target of Rs. 1,57,500 crore.
The Automotive industry has achieved the target of incremental employment creation of 25 million jobs over the period.
Automobile industry has made significant achievements in developing designing and manufacturing capability in the country.
India has now emerged from just an automobile producing hub to designing and development hub as well.
-sb
