Now that the Budget 2018 is finally tabled by Arun Jaitley, Finance Minister of India, it is safe to say that the last full budget by the BJP led government ahead of the 2019 General Elections didn’t bring anything special for the automobile industry. While there were huge expectations from the budget, ranging from ease in GST to relaxation for electric vehicles, there was no mention of the auto industry as such by Arun Jaitley in his whole speech. However, the new budget will surely impact the auto industry as some indirect factors will come into play. Here’s how industry reacted to the Budget 2018-
Was the 2018 Budget a hit for Auto Industry - Read here!
Roland Folger, Managing Director & CEO, Mercedes-Benz India
“The increase in the basic customs duty of auto parts, accessories and CKD components varying from 5% to 10%, clubbed with the new Social Welfare Surcharge at 10%, at a time when the auto industry is reviving, is unfortunate, and comes as a surprise. We believe it is going to impact the auto industry, the consumers and is also against the spirit of ‘Make in India’. The auto industry ended 2017 on a positive note, where it grew despite multiple policy disruptions in the previous year; but the customs duty hike is likely to reverse the growth trend. The automobile industry is already subjected to one of the highest rate of taxes under the GST regime, and with the successful GST implementation and the Government’s GST rate rationalization step in the recent times, the auto industry was expecting the Government to formulate policies and take decisions that would create demand, create additional jobs and help the industry to grow. As the overall costs due to various duty increase is imminent, we are left with no option but to pass on the resulting increase in price to the customers. We want to sustain and continue with our development of innovations and technologies, in introducing world-class products with unmatched safety standards, and also in our people and resources".
Mr. Jerome Saigot, MD, Nissan India
“Union Budget 2018-19 is a reaffirmation of the government’s commitment to sustainable economic growth. The sustained focus on building road and transport infrastructure, skill development and job creation will help in in creating a positive mood in the economy. The stimulus to the agriculture and rural infrastructure will further drive consumer demand in the rural markets benefitting the auto sector and economy overall."
Rahil Ansari, Head, Audi India
"For the luxury auto sector, the Union Budget 2018-19 is disappointing and is against the spirit of partnership. As manufacturers, we have a core social responsibility towards our workforce and the dealer network.
The budget definitely needed an inclusive view for the luxury automobile industry which would have helped the industry to rebound and create more jobs. There is no doubt that increase in auto sales would definitely help the Government in garnering more taxes because of volumes.
Lack of concrete measures for government's ambitious E-mobility project is surprising. However, investments in infrastructure and rural electrification are a welcome move as it will have a long term positive impact for automobile sector."
Sudarshan Venu - Joint Managing Director, TVS Motor Company
“The Union Budget 2018/19 demonstrates government’s intent to boost investments in rural development, education, healthcare and social sectors and will lead to continued and inclusive economic growth. The strong push for infrastructure will also support this growth agenda. The government’s focus on supporting local manufacturing, skill development under Pradhan Mantri Kaushal Kendra and a heightened emphasis on job creation will lead to greater opportunities for the youth of the country."
Also Watch:
Comments
0 comment