DSK Hyosung welcomes interim budget: Two-wheelers excise duty reduction from 12% – 8%
During April-January 2014, two wheelers registered 5.76% sales growth over April-January 2013. Within the Two Wheelers segment, scooters and motorcycles grew at 20.75%, and 2.65% respectively. Moped sales decline was registered at 9.52% in April-January 2014 over April-January 2013.
In all, Indian auto industry produced a total 1,935,311 vehicles (passenger, commercial, three wheelers and two wheelers) in January 2014 as against 1,840,977 in January 2013 to register 5.12% growth over the same month last year. The growth continues to be on account of 2 wheelers production growth.
DSK Hyosung responded to the excise duty reduction presented to parliament during the interim budget yesterday. Mr. Shirish Kulkarni, Chairman DSK Hyosung said, â€śWe at DSK Hyosung welcome this change which comes as a great relief to the Automobile Industry that has been suffering from negative growth. We will ensure that the benefits of reduction in excise duty from 12% – 8% are made available to our customers. We are sure relaxation on excise duty in this interim budget will foster and stimulate the growth in the entire automobile sector. Our concern lies in the fact that the duty shouldnâ€™t be changed post elections. This benefit has to be sustained until the entire automobile sector reflects a growth back to 12 % – 15% at least.â€ť
ACMA, the apex body representing Indiaâ€™s auto component sector, welcomed the reduction of excise duty on vehicles and select auto components in the Interim Budget 2014-15. President ACMA, Harish Lakshman, said, â€śWe are glad that the Honâ€™ble Finance Minister, given the circumstances, has unveiled a pragmatic budget. ACMA welcomes reduction in excise duty on auto components (under Chapter 84 and Chapter 85) from 12% to 10% and on Vehicles â€“ CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively. The automotive industry has been reeling under significant pressure for quite sometime now, the announcement on reduction in excise duty is timely and will uplift consumer sentiments, as well as help boost the sagging morale of the automotive sector allowing for capacity creation and employment opportunities. In addition, the reduction in excise duty on capital goods from 12% to 10% will stimulate the industry for higher investments in manufacturing.â€ť