Excise duty reduction key for auto industry growth, SIAM

SIAM’s senior level team under the leadership of President Vikram Kirloskar called on Ministers of Commerce, Road Transport, Environment and Heavy Industries on 16-17-June, ’14.

Indian auto industryThe agenda set was to inform Ministers about current situations and challenges faced by the industry. SIAM delegation laid emphasis on auto industry potential to contribute to manufacturing and export growth alongside fuelling overall economy, including rural sector. Suggestions and discussions put on the floor emphasised on reduced excise duty on vehicles, new foreign trade policy, and enhanced export incentives for vehicles.

Discussions focused on streamlined and free inter-state movement of vehicles, a boost for electric and hybrid vehicles here, prevention of overloading, and encouraging alternative fuels.

Road safety, is another key area, while emission and fuel efficiency norms, fleet modernisation, scrappage policy, and more was discussed with industry leaders. As per Mr. Kirloskar, SIAM is upbeat about Ministers’ response. SIAM looks forward to the government working on a stable policy framework to ensure sustained growth for auto industry.

As per SIAM, Indian auto industry produced 1,990,010 vehicles (passenger, commercial, three wheelers and two wheelers) in May 2014 to register 14.18% growth over May 2013.