The influx of new automobile majors from China are also set to boost foreign direct investment flows into the sector, which has been relatively stagnant over the past few financial years.
July-September is expected to be one of the worst quarters in a decade with pressure across segments, as OEMs focused on inventory reduction.
The industry has to find its own balance to enhance demand, he added. The GST Council, which met in Goa on Friday, did not cut tax rates on automobiles.
Atul Auto is not the only player. Players like Piaggio, Bajaj auto are also banking on the exports of domestic vehicles in European, Asian and African markets.
But youth refuse to take blame for slump in auto sector, call it an absurd correlation.
Union Road Transport Minister Nitin Gadkari has even hinted that the government is looking at providing incentives for automobile exports.
A scrappage policy is a government-budgeted programme to promote the replacement of old vehicles with new ones.
The industry expects further sales slowdown once BS-VI norms are implemented. These norms are expected to ramp up prices and further dent consumer sentiments.
On Sunday, major companies such as Maruti Suzuki India, Hyundai, Mahindra & Mahindra, Tata Motors and Honda reported a high double-digit de-growth in their sales in August.
While the festive season may be a good opportunity for automobile manufacturers to look forward for better sales, Kim said that with government help, recovery can happen within this year.
Congress spokesperson Abhishek Singhvi accused the BJP of diverting the people's attention from its failures.
Centre will try to get the GST Council to agree to rationalize GST on auto components, besides working out ways to reduce automobile loans to pep up demand for the sector.
According to the notification posted by the company's office here, Lucas TVS had already announced non-working days last month.
The previous biggest decline across overall domestic automobile sales was recorded in December 2000, when it fell 21.81 per cent.
The previous biggest decline across overall domestic automobile sales was recorded in December 2000 when it fell 21.81 per cent.