Budget – something that’s been scaring the hell out of everyone. And now that it is out, scare is a past tense for many. It was heartening to see that the budget was focused towards the common man and the farmers. The budget focused on essential sectors like agriculture, education, health-care and power. Another major sector which experienced quite some action was the automotive sector.
It was a mixed bag for the automotive sector and not everyone was extremely pleased with the outcome. It’s a good thing that the excise duty for small cars has been reduced to 12%. This comes in as a surprise since it was expected to fall by just two percent from the 16% that it stood at previously.
Honda is planning to introduce the hybrid Civic in the Indian market by mid this year and the budget is sure to bring a smile on everyone at Honda. The excise duty for hybrid cars is now down to 14%, a massive 10% reduction from the 24% duty for hybrid cars earlier.
As said, its been a mixed bag of reactions and many members of the automotive circus have already voiced their feelings. Karl Slym, President and MD, General Motors India was quoted as saying - “Some of the other announcements made by the Finance Minister for manufacturing and R&D activities should enhance the competitiveness of Indian industry. There should have been some reduction in corporate tax and similarly there should have been specific schemes for infrastructural developments in the budget which is also missing. However, the intention to promote the development of infrastructure, particularly in rural areas, is a positive step.â€
In essence, the budget has been praised by many and everyone expects to see better things happening. We will keep updating this blog as and when we learn more about the budget and its direct implication on the automotive world.
