The government appears to be finding novel ways to help out the automobile industry. After a series of fiscal incentives, it has now decided to expand the list
The government appears to be finding novel ways to help out the automobile industry. After a series of fiscal incentives, it has now decided to expand the list of companies from which it buys vehicles for its own officers, claiming this would add to the industry’s total sales.
Traditionally, Hindustan Motors’ Ambassador has been the ‘government gaadi’ (apart from the Tata Indica, which was the other approved car in the government’s list of non-AC cars), but some models from Maruti Suzuki, Hyundai Motor India, Tata Motors and even Toyota Kirloskar Motors had also been approved for procurement some time back.
Thereafter, the ministry of finance issued a circular banning new vehicle purchase, citing the economic crisis. Now that this freeze has been lifted, the Directorate General of Supplies & Disposals (DGS&D) has again expanded its rate list to include models by various manufacturers.
A Maruti spokesperson acknowledged that six models including the WagonR, Omni, M800, Alto and Gypsy have again got approved DGS&D rates after a 6-8 month gap. Other models that have also made it to this coveted rate list include Hyundai Accent, Tata Indigo and Toyota Innova.
According to the industry estimates, more than 30,000 vehicles are procured by the central government in Delhi alone each year and the government’s decision to consider many more models for its own use is a welcome step.
But, does this mean the familiar ‘Ambi’ would disappear? Far from it, says a Hindustan Motors spokesperson. “The Ambassador has an earmarked role... there is place for all players and the government’s decision won’t really impact one manufacturer or the other.”
She pointed out that the Ambassador has specific uses: Beacon lights and specified number plates are given only to these cars, it is the only car that can take the weight of “bullet proofing”, it comes at a special rates of just over Rs 3 lakh to Rs 5 lakh plus in three engine variants (1500cc, 1800cc and 2000 cc) and is available in all four fuel options (LPG, CNG, petrol and diesel).
And contrary to popular perception, only 20% of the 15,000 Ambassadors produced annually are sold to government departments.
Industry experts point out that the government can now procure different types of vehicles for different uses — 4-wheel vs 2-wheel drive, air-conditioned vehicles, different engine capacities, etc.
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