SIAM and ACMA hail reduced excise duty extension for Indian auto industry
SIAM President, Vikram Kirloskar welcomes Government’s decision to extend reduced Excise Duty benefits announced 2014-15 Interim Budget and thanks the new government for its timely support on behalf of the Indian automotive industry.
Early benefits from interim budget excise duty reduction can be gauged from the fact that May 2014 automobile sales in India was the 1st time in 15 months that sales were up. In fact, even a difficult segment like heavy commercial vehicles showed signs of early improvement. Indian industry reported production in India at 1,990,010 vehicles (passenger, CV’s, three wheelers and two wheelers) over 1,742,939 in May 2013 reporting 14.18% growth.
Extension of reduced Excise Duty will influence positive ripple effects by improving buyer sentiment to fuel sustained recovery for an automotive industry that has been struggling for over 2 years now. Excise Duty reduction can help propel growth, investments and more jobs to encourage a stable economy.
President ACMA, Harish Lakshman welcomed reduced excise duty extension on automobiles for CY 2014. As the industry will need to make big strides to overcome current stagnant sales, ACMA hopes the announcement encourages automotive sales, and thereby benefit component sector too.
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