Total annual revenue loss could be as much as 500 bn rupees if the panel decided to lower tax rates for auto sector to 18 pc from 28 pc.

Sales of commercial vehicles and two wheelers have narrowed down to 7.4 per cent and 0.3 per cent month-on-month.

Due to increased prices of auto parts, taxes and rise in insurance rates are some of the reasons for slow down in automobile industry.

Automobile and components industry has been affected by BS6 and the mindsets of millennial, who now prefer to have Ola and Uber.

Sales of commercial vehicles were down 38.71 per cent to 51,897 units in August.

According to industry estimates, automakers, component manufacturers and dealers have laid off about 350,000 workers.

Initial stimulus package is not enough to stop the decline in the automotive market, Fitch said.

Production volume of OEMs is estimated to either degrow or log low single digit growth at best in the next two years.

Auto sales declining for ninth straight month, more auto manufacturers are laying off workers and temporarily halting production.

The automobile sector accounts for 49 per cent of India's manufacturing gross domestic product (GDP).