'Govt's ₹20 lakh crore package to help revive commercial vehicle industry'1 min read . Updated: 13 May 2020, 12:30 PM IST
According to SIAM, the automobile sector reported a decline of 28.75 percent year-on-year of commercial vehicle sales during FY20.
The government’s ₹20 lakh crore special economic package has the potential to be "sustainably beneficial" to all sectors of the economy and help revive commercial vehicle industry, in particular, Ashok Leyland MD and CEO Vipin Sondhi said on Wednesday.
Prime Minister Narendra Modi on Tuesday announced a stimulus package worth ₹20 lakh crore, which combines the government's recent announcements on supporting key sectors as also measures rolled out by the Reserve Bank of India (RBI).
"While we await the details, the announcement of the reforms-cum-stimulus to the tune of 10 per cent of GDP… has the potential to be sustainably beneficial to all sectors of the economy," Sondhi said.
In particular, the commercial vehicle (CV) industry will stand to gain, he stated.
The domestic automobile sector reported more than 18 percent drop in sales at 2,15,48,494 units and a 15 per cent decline in vehicle production to 2,63,62,284 units in FY20, according Society of Indian Automobile Manufacturers (SIAM) data.
CV sales during this period declined 28.75 percent to 7,17,688 units year-on-year.
The massive thrust on self-reliance, along with the focus on creating local demand, and resurrecting local supply chains should provide enough impetus to kick start the economy, Sondhi said.
As the Covid-19 pandemic rages on, all these measures are the need of the hour and "more than expected, given the limited fiscal room that was available," he added.
"With the pride of Make-in-India through quality, we look forward to a stronger, self-reliant India where everyone prospers," he said.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.