Mr. Vikram Kirloskar, President, SIAM has welcomed the announcements made by the Finance Minister in the Vote on Account presented today. SIAM would like to thank the Finance Minister for recognizing the need for a more moderate tax structure for the automotive industry and for accepting SIAM’s tax related recommendations, he said.
We believe that this reduction in Excise Duty would reduce the acquisition price thereby making vehicles more affordable which would improve the consumer sentiment and hopefully revive the demand for vehicles, Mr. Kirloskar added.
The Automotive industry is the engine of growth for the manufacturing sector as a whole as it supports key industries like auto-components, capital goods, raw materials, electronics, chemicals, plastics, software etc. Revived growth in the automotive industry would have significant positive impact on these key downstream and upstream manufacturing sectors that largely depend on the performance of the auto sector. This could hopefully herald a revival of the manufacturing sector in the days to come, Mr. Kirloskar said.”
To recap excise cuts have been applied for SUVs (24 percent from 30 percent), midsize cars (20 percent from 24 percent), small cars, CVs, two-wheelers (8 percent from 12 percent.)