NEW DELHI: Automakers made a strong pitch for reduction in the goods and services tax rate to 18% from 28%, higher depreciation benefits and a favourable vehicle scrappage policy to boost demand in a sector struggling with plummeting sales.They also sought the government's intervention in allowing offloading of inventory complying with BS-IV emission standards after BS-VI rules kick in next year, even as they questioned the increased push for switching to electric vehicles.“Industry wants a stimulus package … They have sought reduction in GST,” said a person present at a meeting called by finance minister Nirmala Sitharaman to understand the issues faced by automakers. In addition to GST at 28%, passenger vehicles are levied a cess depending on the segment, further increasing the tax incidence.The person said the industry was of the view that comprehensive steps were needed to address the current situation. Besides, the industry also wanted easier finance to aid sales.In the past year, passenger vehicle sales have fallen every month with an exception in October.Industry executives said footfalls at dealerships have also started to decline, suggesting extremely weak consumer sentiment. According to the Federation of Automobile Dealers Associations (FADA), the industry has cut nearly two lakh jobs in the past three months due to the slowdown.A government official said the industry’s suggestions would be looked at after the consultations. Sitharaman has already indicated that the government would respond “fairly quickly”.“We are getting inputs from various sectors and trying to respond, so that confidence of those sectors is restored,” the minister had said on Monday, after interacting with officials of public and private sector banks.During the meeting, the auto industry wanted the government to instruct banks not to stop lending to “people who are following healthy financial practices”, and not treat all dealers as defaulters. Automakers asked the government also to bring quickly an incentive-based scrappage policy to help replace old and polluting vehicles, which could help accelerate demand for new vehicles.Maruti Suzuki chairman RC Bhargava, president of Mahindra & Mahindra’s automotive business and SIAM Rajan Wadhera, executives from Toyota Motor and Hyundai Motor, as well as representatives from the Automotive Components Manufacturers Association and dealers body FADA attended the meeting. Niti Aayog chief executive Amitabh Kant and officials from other stakeholder ministries were also present.Bosch Cuts Production: German auto components company Bosch said in an exchange filing on Wednesday it will suspend manufacturing at its Tamil Nadu plant for five days in August and eight days at the Nashik plant. It had earlier shut four of its plants for a collective 12 days in the past fortnight.