IAC also sought a reduction in GST on auto LPG kits to 5 per cent from 28 per cent.

Automakers were now banking on the festival season for a lift up, which is expected by the end of this year.

Auto industry has been caught in the middle of slowing economic growth that has led to a slump in demand for vehicles.

M&M's Managing Director Pawan Goenka said that the auto maker has retrenched about 1,500 temporary workers since April 1.

Maruti Suzuki India reported a sixth consecutive monthly sales to decline with the numbers falling 33.5 per cent.

Executives from across the sector also asked the government to provide incentives to scrap old vehicles.

As many as 3.50 lakh jobs have reportedly been lost in the auto industry since the start of the fiscal.

In a meeting with Finance Minister, industry representatives drew attention to challenges faced by the auto industry.

This factory produces a range of radial tyres for the passenger vehicle (PV) segment in Asia's third biggest car market.

Vehicle sales across categories registered a decline of 8.62 per cent to 20,86,358 units from 22,83,262 units in May 2018.