Auto sector needs boosters like scrappage policy soon: JK Tyre & Industries Chairman Raghupati Singhania

New Delhi: India's automotive industry needs a series of boosters including an early announcement of the vehicle scrappage policy to come out of the slowdown, which was exacerbated by the coronavirus pandemic, JK Tyre & Industries chairman Raghupati Singhania said. The recent decision to curb the import of certain pneumatic tyres is a step in the right direction to promote domestic manufacturing, Singhania said. However, much more is needed to accelerate the process, he added.

“A lot is riding on the implementation of the much-needed scrappage policy to effectively capitalise on the pent-up demand,” Singhania, also the managing director of the company, said in an email interaction with ET. “A temporary relief on GST from current 28% to 18% in the auto sector could also help in lifting the demand.” Automobile sales across categories recorded their steepest decline in the last quarter, shrinking 75% from a year earlier to 1.4 million units, as production as well as sales were severely impacted by the Covid-19 pandemic and lockdown.