Ahead of the announcement of general budget by the new government, Society of Indian automobile manufacturers held a meeting with the ministers of Commerce and Industry, Road Transport, Environment and Heavy Industries. According to SIAM, the meeting was to bring to notice challenges and problems faced by automotive sector. The delegation led by President of SIAM, Mr. Vikram Kirloskar has urged the government to retain the current excise duties levied on the vehicles. Among other vital suggestions, a new foreign trade policy and increase in incentives for vehicle exports are also included.
Benefit of reduced excise duties proclaimed in the month of February by former FM in the interim budget was visible in the form of slight increase in monthly sales after a long gap. As per the reduced excise duties currently levied on vehicles, SUVs attract 24 per cent tax as compared to the previous 30 per cent down by 6 per cent. On the other hand large cars and mid-sized cars attract 24 and 20 per cent taxes down by 3 per cent and 4 per cent respectively.
Besides these, SIAM also brought to notice issues like free interstate movement of vehicles and increased road safety, prevention of overloading, promotion of electric and hybrid vehicles, scrappage policy, fleet modernization, emission and fuel efficiency norms. Indian automotive industry contributes around 7 per cent towards the country’s GDP, with the support from government these numbers can increase considerably.
