Roll in credit freewheel for auto industry

NEW DELHI: Some key measures proposed by the ministry of heavy industries for the next 100 days after the formation of the new government:

��� More credit availability for two-wheelers and commercial vehicles

��� Export sops for small car players to encourage investment in India

The Congress-led UPA government may begin its second consecutive term by taking more steps to revive the auto industry as the coalition believes that the sector is not on the recovery path yet.

The ministry of heavy industries is likely to facilitate greater credit availability for the two-wheeler and commercial vehicle segments, which have been worst hit by the downturn.

According to the Society of Indian Automobile Manufacturers (Siam), the sale of commercial vehicles declined 21.69% in 2008-09 over the previous year, and fell 26.22% in March 2009 compared to March 2008. Three-wheeler sales declined 4.13% in 2008-09 over the previous year.

The ministry is also planning export incentives for the small car segment to encourage incremental investment in the domestic automotive sector. While Maruti Suzuki and Hyundai Motor are already exporting small cars from India, others like Ford and General Motors are planning to export cars from here.

Incentives are important to encourage such players to invest in India, a ministry official said on condition of anonymity.