This coupled with work on futuristic models that meet growing demands of Indian customers who are now focused on safety and product quality is turning into quite a challenge.
Automotive Research Association of India (ARAI) and Society of Indian Automotive Manufacturers(SIAM) are creating sustainable mobility policies that highlight reduction of CO2 emissions for commercial vehicles and passenger car, alongwith bettering crashworthiness of vehicles for India.
Changes to be implemented require investment in Research and Development by domestic OEM’s, and government support through tax benefits for OEM’s investing in new tech will go a long way. Akin to Bhutan and other nations, special subsidies for Electric Vehicles/Hybrid Electric Vehicles (EV/HEV) in India can boost Green Mobility and create a new growth arm for the economy, thereby benefiting renewable energy market including solar energy.
In reference to Union Budget 2014-15 announced today, Anirudh Bhuwalka, MD and CEO, AMW Motors Ltd ascertained it a pragmatic budget. The Finance Minister addressed housing, infrastructure, manufacturing and finance sector, with announcements intended to fuel growth. Increase in FDI limits on insurance and defence was expected, and commitment to 4.5% fiscal deficit shows good judgment. Carrying out plans will be critical in matters of Public–private partnership (PPP). Overall budget fosters optimism.
A. Ramasubramanian – President, AMW Motors Ltd welcomed development announcement for highways, industrial corridors, housing, manufacturing , FDI in Defence sector and power projects as such growth will boost demand for commercial vehicles. Tax holidays for infra projects with long gestation periods will encourage more activity in the sector. Implementation will be key.
R. N. Rao, Director – Sales & Marketing, AMW Motors Ltd emphasised that speeding of highway projects and development of 8000 kms of roads in India will fuel M&HCV market growth. Excise concessions for automobile industry are being continued. Industry recovery is dependent on varied consumer and infrastructure sectors and an improvement won’t occur overnight.
Vipin sondhi, MD & CEO, JCB India said no dramatic reforms were expected as the new government has been in office for less than 2 months. During interim budget announcement, Union Government announced Excise Duty concession, further extended till year end in June itself to increase revival of investment cycle. Capital goods sector revival can be expected through focus on infrastructure, encouraging banks to lend long term funds to infrastructure sector, extending investment allowance benefits to Small and Medium Enterprises, and focus on manufacturing growth. While multiple new PPP projects are announced, a roadmap for execution of existing held up projects would help set the wheels in motion in quick time.