General Motors India reports 4,320 units sold in February 2015, (PY 5,607 vehicles), equating to 22.95 pct sales decline. General Motors India, Vice President P Balendran says discontinuation of excise duty benefits impacted the industry these last two months.
Union Budget 2015 announcements are not enough to revive consumer sentiment. General Motors looks at car salesto be driven mainly by new entries in the months to come. Company expects market to gain momentum if interest rates are reduced in phases to encourage consumer spending as over 85 pct vehicles are purchased through financing.
Arvind Saxena, President and Managing Director of General Motors India says Union Budget 2015 is focused on infrastructural development, education, skill development, agriculture, irrigation, health care, social security schemes, etc. Keeping in mind economy, direction given in Union Budget 2015 is a positive one.
Government’s intention to introduce GST, reduce corporate tax, simplification of tax regime, financial sector reforms, GAAR deferral, and other tools are growth drivers. Outlines for manufacturing, power, coal and mining sectors should boost economic activity going forward.
He laments the lack of a monitoring mechanism to ensure timely implementation of projects. In regards to automotive industry, excise duty cut was expected on all vehicle segments as auto industry remains constricted owing to high interest rates, economic slowdown. etc. Changes in CST and customs duty need to be clarified further. Focus on rural roads, highways, expressways, incentives for electric vehicles are welcome decisions.
Finance minister emphasised on the direct taxation front too. Overall, Union Budget 2015 looks forward to a stable tax regime to instil growth in the economy. Implementation of proposals should be wtached with hawk eyes. GM hopes the market will respond favourably.