- Demand of Auto Component Manufacturers Association – reduce the GST rate to the industry to be equal to 18%
- Continuous decline in the sales of vehicles of every category for the last several months, this can lead to a crisis situation.
new Delhi. Due to the continuous decrease in the sales of vehicles, 10 million jobs in the auto component industry are in danger. Auto Component Manufacturers Association of India (ACMA) said on Wednesday that the GST rate should be reduced to 18% for the entire automobile industry so that demand increases and millions of people can survive.
Auto component industry employs 5 million people
The institution has also demanded clarity on the policy related to electric vehicles. ACMA president Ram Venkataramani says that the auto industry is struggling with a huge recession. Sales of vehicles of every category have been continuously falling for the last several months. The auto component industry has employed 50 lakh people.
According to Venkataramani, the growth of the auto component industry is dependent on the vehicle industry. A 15-20% reduction in vehicle production can lead to a crisis. If this continues, then about 10 lakh people can get jobs. Several places have started to be sorted.
At present, 70% auto components fall within 18% GST. 30% is 28% GST. Automobiles takes 28% GST. Cesus from 1 to 15% is also applicable on this.