The Union Minister informed that he has directed the ministry officials to finalise the auto scrapping policy quickly, which, he said, will go a long way in cost reduction.
The order also stated that that ministries and departments in consultation with their financial advisers shall ensure that all purchases of vehicles are made judiciously keeping in mind the principle of "need" and want.
Auto stocks were hit across the board with Tata Motors losing by 3.8 per cent, Maruti by 3 per cent and Eicher Motors by 2.3 per cent. Among the other prominent losers were JSW Steel, Zee Entertainment, GAIL, Bharti Airtel and UPL.
Tata Steel moved up by 2.9 per cent. ICICI Bank edged higher by 2.9 per cent and IndusInd Bank by 2.3 per cent. Oil marketing firms like Indian Oil and Bharat Petroleum gained by 1.7 per cent each.
The slowdown in auto sales stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.
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