DSK Hyosung welcomes interim budget: Two-wheelers excise duty reduction from 12% – 8%
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.
Overall domestic sales during April-January 2014 grew marginally by 2.46% over the same period last year on account of two wheelers’ sales growth. During April-January 2014, overall automobile exports grew by 6.29%. Passenger Vehicles, Three Wheelers and Two Wheelers registered growth at 7.11%, 15.99%, and 5.27%, respectively. Commercial Vehicles registered 10.87% sales decline during April-January 2014 when compared to the same period last year.
DSK Hyosung responded to the excise duty reduction presented to parliament during the interim budget yesterday. Mr. Shirish Kulkarni, Chairman DSK Hyosung said, “We 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 shouldn’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.”
ACMA, the apex body representing India’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, “We are glad that the Hon’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 – 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.”