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Home National India Auto Inc comments on Union Budget 2016 Industry

India Auto Inc comments on Union Budget 2016 by Autocar Pro News Desk Feb 29, 2016

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RAKESH SRIVASTAVA, Senior VP (Sales & Marketing), Hyundai Motor India

Hyundai Motor India’s Rakesh Srivastava told Autocar Professional that the additional infrastructure cess will have to be passed onto the consumer almost immediately and will be added at the factory level. It will be billed to the dealer at the higher tax rates on the new consignments. “The finance minister has looked towards rural revival along with an infrastructure push and social welfare to restart the economy. It is an attempt towards fiscal prudence, enhancing demand and policy reform to address the strong headwinds in the global economy. The last few months have been challenging in terms of low volumes and growth and there were expectations of a scrappage scheme to revisit vehicles high on emissions and low on mileage. This was in addition to investment incentives to bring in more hybrid and fuel cell vehicles. In light of this, the increase in taxes comes as a dampener and will affect the entire spectrum of petrol and diesel vehicles.”SUMIT SAWHNEY, Country CEO & MD, Renault India Operations

The Budget clearly focusses on a long-term vision aimed at high growth, together with emphasis on the fiscal deficit, and keeping big bang investments in check. But policies for the automobile sector remain largely unchanged.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, the common hope across the automobile industry was that the government includes some industry friendly policy decisions which will build confidence.

Citing pollution and the traffic situation in cities as a matter of concern, there is a proposal to levy a cess of 1% on small, petrol and CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs.While doing this, the industry was hoping that the government should have taken progressive steps such as introducing a ‘scrappage incentive scheme’ to keep older cars off the roads and would not have impacted the industry. Such a policy will benefit the environment, reduce fuel consumption and also propel further demand for greener and efficient vehicles.The industry was also hoping for excise duty reduction to be reintroduced and a roadmap on GST implementation, as a unified excise and taxation structure will go a long way to benefit the industry.Although the Budget didn’t have much for the automobile sector, we are hopeful for some pro-business policies on a continual basis to benefit the industry.A positive to the auto sector is the investments and reforms in agriculture and infrastructure sectors, which will have a rub-off effect on the core sectors that drive the economy. Overall, Budget 2016 rightly focusses on the core issues which needed attention. It will go a long way in putting India back on the global business radar by making it more investment-friendly, enhancing the ease to do business, lowering subsidies and optimising its allocation.It also has a strong welfare message, taking into consideration the requirements of a wide section of society. From housing and electricity, to water supply and employment, the Budget had a strong vision for the people of India.”YADVINDER SINGH GULERIA, Senior VP (Sales & Marketing), Honda Motorcycle & Scooter India

"We welcome the Union Budget. The finance minister has walked a fine rope of balancing social welfare with economic growth. In the backdrop of 2 consecutive weak monsoons, the government’s focus on rural sector especially farmer welfare, education, interest subvention on existing loans and skill development will inject strength in rural economy. The Rs 100,000 crore allocation on road and highways will accelerate connectivity and mobility across all geographies led by rural areas, which is very positive news for overall auto industry. Overall, we expect such measures once implemented, will revive the stagnant demand for two-wheelers in the rural market."NISHANT ARYA, Executive Director, JBM GROUP

“This Budget paves the way for equitable growth through skill development and job creation which in turn would lead to an exponential increase in demand for goods and services in the economy. The government has proposed commendable measures to remove the economic inequities by giving the poor a higher budgetary provision while taxing the rich. The government has also moved ahead with Make in India campaign and promised easing of custom and excise duties to boost manufacturing in the country. Tax structure of small companies has been made favourable while large infrastructure companies can raise funds by issuing infrastructure bonds. Overall, this is a good Budget. The focus now turns to what happens to GST.”FARROKH N COOPER, Chairman & MD, Cooper Corporation

“The Budget is pro-rural, pro-farmer, pro-common man. They have rightly seen the need to increase the income of the people who virtually live on grassroots and are the grassroots of the country. This in itself will generate tremendous GDP. We congratulate Mr Arun Jaitley for his vision and we are sure that in the history of India his Budget will be seen as a landmark.We acknowledge the concessions he has given for the export sector and simplification of tax administration and litigation.”ANAND SUNDARESAN, Vice-chairman & MD, Schwing Stetter India

“The huge investment proposed on infrastructure development like roads, airports, railway and power projects will definitely give a fillip to construction equipment manufacturers. Road equipment manufacturers are likely to be benefitted the most because of the huge investments planned in the national highway sector as well as in the upgradation of state highway roads to national highway level.After a dull period of almost 3 years, construction equipment manufacturers can look at growth in the coming years. Significant emphasis on irrigation projects and rural road projects under the PMGSY scheme will also help the construction equipment industry. This will create enormous opportunities for smaller capacity construction equipment. I expect that current manufacturers will not be able to meet the anticipated demand, which will lead to opening up the opportunity to many new manufacturers. Many sops are also given for the building / real estate industry, which should give a boost to the sick real estate industry. The tax reforms and the expressway created for settlement of disputes on various infrastructure projects and PPP projects are most welcome. Overall, the Budget is quite good and progressive and will be an elixir to Make in India concept.” First <<< Previous 1 2 3 Next >>> Last

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