The Union Budget from the new government is due to be presented on Monday. There are ambitious expectations of the common man who has chosen the new Government as a true representation of a secular government with a progressive outlook. The auto enthusiasts, auto industry and the auto buyers are all looking forward to the new budget and its long term implications on the auto industry in India.
Most of the auto companies anticipate that the government will continue with its current CENVAT cut of 4 percent currently prevailing in the auto market. The companies even want the government to reduce the excise duty by about 8 to 10 percent. One of the much anticipated moves is the relaxation towards hybrid models. Auto companies intend to introduce more eco-friendly models including hybrid models. So far India does not offer any incentives to the auto industry for importing eco-friendly cars.
On the other hand, car buyers and auto makers are anticipating availability of better finance options to increase liquidity in the market. The sales drip experienced by these auto companies hasn’t grown as much as it was expected.