China, which is reeling under the impact of the Coronavirus outbreak, accounts for 27 per cent of India's auto component imports valued at $4.8 billion.
Tata Motors expects the passenger vehicles market to make a recovery in the second half of the next financial year.
The main attractions at the Auto Expo in 2020 will be the electric, hybrid, and connected vehicles in anticipation of the BS-VI norms.
Transition to BS-VI emission norms, higher road taxes, and a slump in demand pose a serious challenge to the auto industry, Toyota Kirloskar's Vice-Chairman said.
By doubling its exports, Renault hopes to support its domestic suppliers through the prolonged slowdown in the automobile industry.
Mahindra and Mahindra MD Pawan Goenka hopes that the upcoming six weeks of the festive season can revive the automobile sector from its current sluggish sales trap.
The 10-12 per cent reduction in corporate tax rates, instead of a GST rate cut, will only result in a maximum discount of 2 per cent from the automotive sector.
36 per cent millennials want to use the proceeds from their car sale to upgrade themselves to a new car, while 17 per cent of them upgraded to a pre-owned car with better features.
Maruti Suzuki India, which has a 50 per cent in the domestic passenger vehicle segment , sought a single nodal ministry to regulate the Indian automobile sector instead of multiple ministries.
According to SIAM, vehicle manufacturers have laid off 15,000 temporary workers, while dealers have witnessed around 2.8 lakh job losses with nearly 300 dealerships closing in the past three-four months.
On average each vehicle manufacturer is spending close to Rs 1,000 crore to upgrade all of their model line-ups to meet the new emission norms within the stipulated time, SIAM President Rajan Wadhera said.
Although the auto industry is hopeful of a sales upturn during the upcoming festival season, SIAM urged the government to reduce the GST rates from 28 to 18 per cent to create demand.
ICRA said that in the short-term, prevailing subdued rural and urban sentiments would matter besides the upcoming BS-VI emission norms.
Bhargava said it is time for state governments to become partners in making manufacturing industry grow and recognise the importance of its role in the overall automobile industry.
Safety norms and higher taxes have "added substantially" to the cost of cars, Maruti Suzuki India Ltd Chairman RC told shareholders, citing this as the reason for not renewing workers' contracts.
In a meeting with finance minister Nirmala Sitharaman, industry executives asked for tax cuts, and easier access to finance for dealers and buyers, in an effort to revive sales.
Automobile sales in India witnessed its sharpest decline in nearly 19 years in July, dropping 18.71 per cent, rendering almost 15,000 workers jobless over the past two-three months.
Around two lakh jobs have been cut across automobile dealerships in the last three months.
With plunging sales, nearly 300 dealerships have been forced to close down leading to loss of around two lakh jobs.
While industry players agree that the downturn is not something new, they say that the pressure this time is different and more severe than the earlier ones.
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