With the Indian elections coming to an end and the UPA government coming to the power once again, industries in India are looking at the new government. The Indian Auto industry, still grappling under falling sales and tight credit, also looks at the government to continue supporting the sector with relaxed duty norms.
The auto makers in India have been asking for removal of differential excise duty structure for different sizes of vehicles. “The government must review and amend large differences in excise duty on different sizes of vehicles," said Pawan Goenka, M&M President, Automotive Sector. “First and foremost (there should be) no reversal of financial stimulus packages announced over the last six months,” he added.
His opinion is further backed by Maruti Suzuki India Managing Director Shinzo Nakanishi. "Backed with this verdict I am sure the new government will re-enforce its initiatives to promote the automobile industry as a key economic driver," he stated. He had earlier commented before the elections that he hoped the succeeding government will continue to support the auto sector and there will be no excise duty hike.
Indian auto sector has been sailing through choppy waters since past few months. The auto sales growth has been only 0.71 percent last fiscal. The major thrust in the sector had been experienced only in the last quarter due to government’s stimulus package by introducing th excise duty cut.