New Delhi: Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA) have submitted pre budget memorandum which is considered by Government during preparation of annual budget. Recently government has taken several initiatives for growth of automobile industry.
At present, 100% FDI is allowed in automobile sector. The Government has also reduced excise duty rates on vehicles which has helped boost sales in the past several months.
Further, the Government has drawn a ten year Automotive Mission Plan(AMP)2006-16 for the Indian Automotive Industry to maintain high rate of growth and to retain the attractiveness of Indian market and for further enhancing the competitiveness of Indian companies. The Mission plan is a corner stone of the govt. Policy for the sector.
Apart from this, the Government has also taken several other initiatives to strengthen this sector; such as support to R&D projects through automotive cess funding; implementation of National Automotive R&D Infrastructure Project (NATRIP) for setting up of world class infrastructure for homologation and testing;setting up of the National Automotive Board(NAB) as a repository of auto R&D expertise and an apex coordinating body to address the need of collaborative R&D and synergizing the activities of NATRiP.
Government has also been working hard for introducing Electric/Hybrid transportation in the country under National Electric Mobility Mission Plan (NEMMP) 2020 to provide clean mobility solutions to the people while reducing the country’s dependence on fossil fuel.