Scania Commercial Vehicle India Union Budget 2015 reaction

Anders Grundstromer, Managing Director, Scania Commercial Vehicle India says Union Budget 2015 lays emphasis on manufacturing to further boost its ‘Make in India’ campaign.

Anders Grundstromer, Managing Director Scania Commercial Vehicle India
Anders Grundstromer, Managing Director Scania Commercial Vehicle India and Senior Vice President Scania Group

Investment and development along with focus on developing skilled workers in India is a key focus area. Scania Commercial Vehicle acknowledges Indian government’s commitment to make the development process as environment friendly as possible. SIAM had earlier requested for customs duty increase on commercial vehicles from 10-40 pct. The effective rates have been increased to 20 pct. It lefts to be seen is import duty hike for CVs benefits domestic CV manufacturers majorly. Keeping in mind that import duty effects high end hydraulic power steering units, which are imported in a limited number owing to its market size here.

Scania Commercial Vehicle views increase in customs duty for CVs disappointing. But views overall Union Budget 2015 announcements as one where positives outweigh the negatives. Union Budget 2015 outlines a clear commitment to implement GST by 1st April 2016.

Easing of norms fosters tech flow, flow of capital, and focus on sustainable development along. The road map comprises clearly stated goals with an additional 1 lakh kms of roads to be built, doubling clean energy cess on use of coal, and launch of a scheme for faster adoption are pro growth in nature, and encourages manufacturing. Scania Commercial Vehicle would have liked more clarity regarding India’s biofuel and sustainable solutions focus in the transport sector. Bio-ethanol assuress carbon savings of about 70 pct. Overall, broader perspective is positive, and Scania looks forward to partnering with India on this exciting journey.