Posted March 12, 2020 18:06:16It’s been a tough year for the Indian car industry.
On March 3, the government passed the Motor Vehicles (Amendment) Act, a bill that will make it easier for new carmakers to get approval from the state governments to begin production.
The bill has sparked anger in the industry, with carmakers fearing it will force them to change the design of their cars.
But in a sign of the industry’s resilience, it is not just the new government’s changes to the Act that have caused concern.
There are two other major issues that have not gone away, said Vicky Thakkar, director of consumer services at Indian Automobile Association.
One is the government’s decision to exempt new car companies from the Motor Vehicle Act.
This meant that all new car models made before the bill’s passage could not be sold to the public.
This has raised fears among carmakers that their products will not get approved.
The second is the proposed GST, a tax that will be levied on imported goods from 2018, that could potentially drive down the cost of manufacturing.
India has the third-highest automobile market in the world.
There are more than 15 million cars in circulation.
In the past year, a lot of new cars have been launched, with many of them going on sale.
The first wave of new car sales in the country saw 1.6 million vehicles, according to industry figures.
The industry has also been struggling to adapt to the new tax system.
The new GST is expected to raise more than $1.3 billion ($1.25 billion) for the auto industry over a five-year period, according the Automotive Manufacturers Association.
In an effort to ensure that its products do not get affected by GST, the auto sector is working with car manufacturers to develop an automated vehicle identification system, which will automatically scan the licence plates of new vehicles, including cars that have been redesigned to fit GST’s rules.
This is a significant step forward, said Amit Shah, chief operating officer of Indian Automotive.
“If they have the right technology and knowhow, the industry can easily adjust its models to the changes,” he said.
There is some good news though.
The government has also given the auto makers a two-year time limit to prepare their vehicles for GST.
This could give the auto companies time to make adjustments to their designs and get approved by the government.
However, this means that some manufacturers may have to rethink their designs to avoid getting hit by the new law.
“The first wave was a massive setback for the industry,” said Arun Gupta, CEO of auto consultancy Auto-Insurance, which offers insurance for new vehicles.
“The second wave is a huge setback for a new car industry in the coming months.”
While there has been some optimism in the auto manufacturers, there is still a long way to go.
Shah said that, for now, it would be best to wait for the government to implement its changes to make sure the auto firms are compliant.