Gadkari acknowledges auto industry slowdown, hints at GST cut

New Delhi, Sep 05: Minister of Road Transport and Highways Nitin Gadkari on Thursday said that automobile sector is facing problem and assured that he will take up industry's request to reduce GST on petrol and diesel vehicles with the finance minister.

Gadkari said that the government is not planning to ban petrol and diesel vehicles. The minister said that the government is also trying to bring a vehicle scrappage policy soon.

"There is a fact that as far as the present economic data is concerned automobile sector is facing problem, because of global economy, demand and supply. Government is already with the automobile industry and under the Finance Ministry we will find out a solution," he said.

"There were discussions and the ministry had received suggestions that petrol-diesel vehicles be banned. I would like to clearify that govt does not intend to ban petrol & diesel vehicles. We are not going to do anything like that," he said at at the Society of Indian Automobile Manufacturers (SIAM) Conclave.

Auto industry body SIAM earlier sought immediate steps from the government, including a reduction in GST rates and initiation of scrappage policy, as sales continued to plummet with passenger vehicle makers witnessing a decline of 30 per cent offtake in August.

"Considering the slump in the sector and expected increase in cost with implementation of BS-VI emission norms, I will give my recommendations to Finance Minister," said Gadkari addressing the audience at SIAM conference.

Finance Minister Nirmala Sitharaman had earlier announced several steps to revive the sector.