Since 2012 automobile sector has been passing through a difficult phase and companies operating in the secor have high hopes that Narendra Modi Government will adopt necessary measures to revive the automotive industry.
While umbrella organisation of automobile companies SIAM apprised Government of the current status and challenges being faced by the industry, they also made some specific suggestions.
A senior level SIAM team lead by its President Vikram Kirloskar highlighted to the Government potential of the industry to contribute to the growth of manufacturing, exports as well as to the economy as a whole, including rural sector.
SIAM suggested continuation of the reduced excise duty on vehicles, new foreign trade policy, enhanced export incentives for vehicles, streamlined and free inter-state movement of vehicles, promotion to electric and hybrid vehicles and prevention of overloading, encouraging alternative fuel vehicles, enhancing road safety, Emission and Fuel Efficiency norms, Fleet Modernisation and Scrappage policy etc.
While reacting to The Pioneer’s query on Budget expectation from country’s largest car maker Maruti Suzuki India, its spokesperson said: “Government has extended the excise duty on vehicles till 31st December 2014, which is the most welcome step. like any other institution or a person, we are hoping for a Budget that can boost growth.”
ACMA, which represents the interests of auto component companies, has identified and voiced its expectations to the Government from the upcoming Union Budget 2014.
“The automotive industry is one of the key drivers of the Indian economy, which is currently undergoing unprecedented downturn, it is, therefore, critical that focussed attention be given for stimulation of the automotive industry. We are hopeful for a favourable outcome from the forthcoming Budget,” said ACMA President Harish lakshman.
ACMA has proposed recommendations like continuation of 10 per cent excise duty on auto components, elimination of Customs Duty on alloy steel, mild steel, aluminium alloy and secondary aluminium alloy domestic steel. Aluminium alloy suppliers benchmark their prices based on the landed prices.
ACMA wants 100 per cent Cenvat credit on capital goods in year of purchase, early implementation of GST. Further, they recommended that till such time the GST is implemented, CST be reduced to 1 per cent from existing 2 per cent.