India’s largest car manufacturer Maruti Suzuki expects the new government to continue support to the badly hit car industry.
Managing Director and CEO of Maruti Suzuki India, Mr. Shinzo Nakanishi said, "Last December the government cut excise duty and froze petrol prices, and also cut interest rates. Those steps helped the auto industry.”
He reiterated, “The company totally agree with SIAM’s (Society for Indian Automobile Manufacturers) view that the auto industry needs support from the government for survival. He further added, “I hope the new government continues with the support and there are no excise duty hikes. I'll be happy if there is a further excise duty cut."
The Indian auto industry has been experiencing its roughest period in the history. The industry registered just 0.71 percent growth in car sales in the last fiscal year. Even this growth was witnessed due to the stimulus package offered by the government.
According to a report by SIAM, passenger vehicle sales would have shown a mere three percent or no growth at all, if no stimulus package would have been provided by the government. In the fiscal year 2008-09, passenger car sales rose by 1.31 percent to 12,19,473 units.
The government had cut down CENVAT by four percent and also brought down the excise duty from 10 percent to 8 percent to boost sales. In this fiscal year, the government has given a massive tax deduction on luxury vehicles, which reduces the prices by almost Rs 50,000.