Experts are anticipating a reduction in the rates of excise duty from the upcoming Union Budget for the Indian auto sector. According to auto makers and analysts, the excise duty must be brought down to 10 per cent for small cars and commercial vehicles from current 12 per cent. In addition, large cars and utility vehicles are presently witnessing an excise duty of 25 and 27 per cent, respectively, which is expected to come down to 22 per cent.
Reportedly, the Indian auto sector has emerged as one of the significantly developing growing sectors in the last few couple of years. The auto industry of India has witnessed a tremendous growth in all the sections, right from two wheelers, three wheeler and passenger car section. It must be noted that some industry experts are also of a view that this much cut in excise duty has less likelihood; however if it comes as reality, the sluggish auto industry will witness a momentous boost in sales.
In relation with the upcoming Budget to auto industry, the Managing Partner at Roland Berger Strategy Consultants India, Wilfried Aulbur said, “The coming budget should provide a significant boost to an ailing automotive industry. Despite best efforts, we are quite likely falling short of the goals set in the AMP 2016 by several tens of billions in terms of contribution to GDP and several millions in terms of jobs.”
According to him, the government must keep a check on the emission norms in spite imposing additional excise duties on diesel models. Speaking in the favour of industry experts, an analyst at PriceWaterhouseCoopers, Abdul Majeed said that auto industry is expecting that the 2013 Budget will add to the moral of sector and will come up as good news for the entire industry.