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Auto Sector Biggies Optimistic about Budget 2015

We are inching towards the magical date of 28th Feb, 2015 - the day when government would present Budget 2015-16. With a strong contribution of 7% in country's GDP, Automobile sector undoubtedly is a significant segment in defining our growth. Riding on high hopes from our Finance Minister, Mr. Arun Jaitley, here is what the top layer of auto sector has to say about Budget 2015;

Mr. Sumit Sawhney - Country CEO & MD, Renault India

“In the year gone by, the most important development for the Indian economy was the formation of a stable Government. We have seen some positive policy decisions and look forward to sustained pro-business interventions to boost the economy, and in turn benefit the automobile industry. The automobile industry features in the ‘Make in India’ program, and has been identified as one of the 25 thrust sectors outlined for growth. Together with its role in making India a manufacturing powerhouse, we hope that the Government includes some customer friendly policy decisions which will build customer confidence and in turn boost sales.”

“The industry is hopeful that the excise duty reduction is reintroduced, as from a long-term perspective, a unified excise duty structure will go a long way to benefit the industry. We are also looking forward to the implementation of the GST bill, which the Government has tabled in Lok Sabha, which will play a significant role by creating a uniform tax structure across all states.”

“We also want the Government to introduce a scrappage incentive scheme 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. Together with this, we hope for measures and policies to maintain a healthy balance between interest rates, inflation and arrest the fall of the rupee, which will benefit the economy and the automobile industry alike.”

Mr. Vimal Sumbly - Managing Director, Triumph Motorcycles India

“Considering the fact that India has an aspiring & vivacious consumer base that has the zeal to explore new experiences and avenues, it is definitely a place every brand should be present in. But the need of the hour is a more conducive environment. The govt. in the upcoming budget should look at cutting down excise duty. This is necessary to not only boost the overall sentiments of the business environment but will also effectively aid the ‘Make in India’ campaign.”

“Another step that Govt. can take to boost the industry would be to reduce the repo rate by RBI. This will boost investment in the economy and help the already existing companies by positively stimulating demand and also increase liquidity in the market. Moreover, post the Govt. withdrawing excise duty benefit from the auto sector forcing car and two-wheeler makers to increases prices by 1-5%, this rate cut will help bolster sales as consumer loans would get cheaper. To support the ‘Make in India’ campaign, it would also be good to see some relaxation in the clearance procedures for Infrastructural projects.”

“Another interesting approach the Govt. can take which can effectively boost the premium motorcycle industry in India would be to cut import duty on products which don’t conflict with the already existing Indian manufacturers. For instance, reduce duty on motorcycles that are 800 cc and above. No Indian manufacturer sells in that segment and hence will not adversely affect the Indian grown businesses and will simultaneously support foreign luxury manufacturers.”

“For any manufacturer, the expectation from the Govt. will just be with regards to making the environment more encouraging and also to trim down the extremely high duties allowing us to be relevant to a larger section of people.”

Source : CarDekho