Mahindra, speaking at the company's Annual General Meeting on Wednesday, also sought some temporary relief on the GST front by modifying the slabs or if it was not possible then by removing the cess.

M&M on Wednesday reported a 26% year-on-year drop in its net profit during the quarter ended June 30, 2019, to Rs 981 crore. Gross revenues and other income of the company together with Mahindra Vehicle Manufacturers Ltd fell to Rs 12,997 crore as against Rs 13,550 crore a year ago. M&M said that it was able to maintain margins only due to falling commodity prices.

Pawan Goenka, MD, M&M during a post-earnings press meet said that new job losses are happening in four areas – original equipment manufacturers (OEMs), suppliers, dealers and unorganised sector.

According to an industry estimate, during Q1 FY20, the Indian auto industry de-grew 12.3%, with all segments of the industry reporting a decline. It is after six years, that all segments of the industry have posted a reduction in the same quarter. For the PV segment, Q1 FY20 is the fourth consecutive quarter of reduction, the worst ever de-growth since Q3 of FY2001.

The automotive demand continues to be impacted by the slowing down of the overall economy, which, along with tight credit conditions and delayed monsoon, has impacted consumer sentiment in both urban and rural India. The other prominent reasons include the rise in fuel prices, new insurance laws leading to an increase in its costs, increase in the vehicle registration fees, among others.

Mahindra said he understands the government's hesitancy in looking at GST concessions, though there is a paradox here. "The auto industry contributes revenues of upwards of Rs 180,000 crore to government treasuries. The paradox is that while the government needs to be lauded for its fiscal responsibility, the current slowdown in the auto industry poses a greater threat to the financial arithmetic," he said.