General Motors, Hyosung, Renault and Nissan India jaunty, Excise Duty concession extended
Excise Duty announced back in February 2014 entailed reduction from 12% to 8% on small cars, two wheelers and commercial vehicles. Excise duty reduction on mid & large segment cars went from 24% to 20% and 27% to 24%, respectively, and on SUVs from 30% to 24%. Reduction for Chassis (Truck) went from 13% to 9%, and Chassis (Bus) from 14% to 10%.
President and Managing Director, GM India, Arvind Saxena welcomes Finance Minister, Arun Jaitley’s announcement regarding excise duty concession on automobiles being extended for 6 months until December 31, 2014. He is hopeful that the Govt will extend reduction to a full year as the auto sector continues to be sluggish. In fact, the Govt would do well to announce other measures this budget to fuel growth revival.
Sumit Sawhney, Country CEO and Managing Director for Renault India too welcomed the the low excise duty extension for 6 months reflecting on the new government’s positive intent towards growth in key sectors to revive the Indian economy.
Excise duty reduction for automobiles being extended by 6 months is a positive move in the right direction, and supports auto industry progress. Renault is keen on the government taking a long term view on a unified excise duty structure and looks forward to further duty reduction.
Renault opines that in the days measures undertaken would need to support promotion of electric and hybrid vehicles for a cleaner India. Policies to check emission and fuel efficiency norms, fleet modernisation and scrappage policy for better environment conditions is also awaited. A sustained and overall government approach will provide a much needed impetus to automotive sector to fuel overall economy/industrial growth.
Sunil Rekhi, Chief Financial Officer at Nissan India also hailed the Union Governmentâ€™s decision to extend excise duty concession on automobiles through the rest of 2014. Nissan India will continue to pass on the benefit to dealers and customers. He did emphasise on increase in freight cost, fuel price increase, high interest rates and weak monsoon forecast as dampeners to overall economic growth through tough market conditions.
Mr. Shirish Kulkarni, Chairman DSK Hyosung views the extension of excise duty roll back from 12% to 8% for two wheelers as a step in the right direction. Duty reduction announced earlier during interim budget has over 3 months seen marginal growth in the automobile industry. Continuation of excise reduction through 2014 will aid manufacturers to maintain uniform prices and foster growth. Further conducive measures are expected to support the auto industry enabling the sector to grow at 12-15% at the very least.