The Automobile sector is a key driver to boost the economy and its significance in India is highlighted by the fact that India is expected to become the world’s third largest market after China and the US by 2020. So, the expecation from the Buget is also great. Automobile companies want introduction of GST, excise duty cut and introduction of a scheme for scrapping of old vehicles, to name a few.
“The Government had presented a Budget with focus on long-term growth of the country in FY 2015-16 and we expect a similar Budget this year which is Pro-growth. Improving consumer sentiment and creating demand is a priority for both the industry and the Government, and we expect the forthcoming Budget to address this,” said Audi India Head Joe King
“Introduction of GST will go a long way in helping in ease of business. Reduction in excise duty on cars and SUVs will go a long way in boosting sentiments of the entire auto industry that accounts for a significant share of the country’s manufacturing gross domestic product (GDP) and is one of the biggest job creators,both directly and indirectly.” Joe added.
The automobile sector contributes 40 per cent of the country’s manufacturing GDP and generates an estimated employment of 29 million (direct and indirect).
“Together with its focus in making India a manufacturing powerhouse, we hope that the Government uses the Budget to include some automotive sector friendly and pro-business policy decisions which will help boost this important sector which is one of the key driver of countries growth,” said Renault India CEO & Managing Director Sumit Sawhney.
“Another longstanding request is the introduction of a scheme for scrapping of old vehicles which will keep older cars off the roads. This will benefit the environment, reduce fuel consumption and also propel further demand for greener and efficient vehicles,” he added.
Moreover, he added, we look forward to policies that will create more incentives for environment-friendly vehicles. With the Government stipulating that India will directly move from Bharat Stage IV to VI emission norms in 2020, companies have their task cut out in earmarking investments for new technologies. It is in this context that the auto industry is hoping that the Centre will offer substantial incentives to promote hybrid and electric cars, and also develop the necessary infrastructure to make this a viable solution.