The government today said the automobile sector has been given a "very strong" package indicating the industry should not expect more.
"Auto stimulus has been very strong which has been announced few days back...," Department of Industrial Policy and Promotion Secretary Ajay Shankar said here.
Besides the cut in interest rates by commercial banks following policy rate reduction by the Reserve Bank, the commercial vehicles segment was provided 50 per cent depreciation between January and March this fiscal. The move would encourage the transport firms to modernise their fleet and generate fresh demand for the commercial vehicles.
In the stimulus package on January 2, the government had asked the public sector banks to provide a line of credit to the non-banking finance companies for lending to the sector.
However, major manufacturers, including Ashok Leyland and Tata Motors, are still keeping their production at minimal levels to match sluggish demand.
"As of now the company has decided to continue with the three-day a week production schedule till the end of January," a spokesperson of Ashok Leyland said.
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Tata Motors, which had in the recent past resorted to multiple temporary block closures at its units in Jamshedpur, Pune and Lucknow, is also watching the market demand.
"Currently, our plants are working normally but we are extremely flexible to react to market situation and will do so according to demand," a Tata Motors spokesperson said.
Another firm VE Commercial Vehicles is also keeping its production in check.
Just before announcement of the second stimulus package, Heavy Industry Minister Sontosh Mohan Dev had met Prime Minister Manmohan Singh seeking a separate set of measures for the automobile industry.