The Government of India, through three stimulus packages, has taken several measures for revival of Indian automobile sector. These include reduction of excise duty, increasing liquidity and credit flows in the market, etc. In addition, direct demand generation of Commercial Vehicles (CVs) through JNNURM Scheme for procurement of buses and also specific credit flow measures for this segment has been done. In addition, in order to create demand, accelerated depreciation @50 has also been offered for the CV segment.
As per the information received from Society of Indian Automobile Manufacturers (SIAM), the total number of automobiles produced in May 2008 was 980067 which has gone up to 1044084 in May 2009, showing a 6.5% increase.
The total commercial vehicles sold during the month of May 2009 was 30,800 as compared to 36,141 in May 2008 showing a decrease of (-) 15%. Similarly, the total utility vehicles sold during the month of May 2009 was 16,266 as compared to 22,958 in May 2008 showing a decrease of (-) 29%.
This information was given by Shri Arun Yadav, Minister of State in the Ministry of Heavy Industries and Public Enterprises in a written reply to a question in the Lok Sabha today.