 "Budget 2014-15 wish list: Automotive sector")
Automotive sector
Key developments
* Deregulation of diesel prices: Government's decision to continue with deregulation of diesel prices will help in bringing a balance in the sale of petrol and diesel cars
* Tight liquidity and high interest rates impacted the sector for the major part of the current fiscal which led to a subdued consumer demand
* Slow economic growth and high inflation have also impacted the overall growth of the automotive industry
* Extension of Excise duty cuts announced in interim Budget: Government's decision to extend excise duty benefits on commercial vehicles, two-wheelers and cars until December 2014 is likely to boost sales during the festive season
Key issueS
* Road map for GST implementation: A clear road map for GST implementation is the need of the hour. Necessary constitutional amendments were supposed to be taken up and the platform for implementation was supposed to be operationalised by August 2012, but this got delayed further. The industry will keenly look forward to its full implementation at the earliest
* Infrastructure development: Continue to emphasise on infrastructure growth for the country and rope in private sector for infrastructure investment. The government can explore increasing the budgetary allocation towards National Highways and Development Projects
Key developments
* Deregulation of diesel prices: Government's decision to continue with deregulation of diesel prices will help in bringing a balance in the sale of petrol and diesel cars
* Tight liquidity and high interest rates impacted the sector for the major part of the current fiscal which led to a subdued consumer demand
* Slow economic growth and high inflation have also impacted the overall growth of the automotive industry
* Extension of Excise duty cuts announced in interim Budget: Government's decision to extend excise duty benefits on commercial vehicles, two-wheelers and cars until December 2014 is likely to boost sales during the festive season
Key issueS
* Road map for GST implementation: A clear road map for GST implementation is the need of the hour. Necessary constitutional amendments were supposed to be taken up and the platform for implementation was supposed to be operationalised by August 2012, but this got delayed further. The industry will keenly look forward to its full implementation at the earliest
* Infrastructure development: Continue to emphasise on infrastructure growth for the country and rope in private sector for infrastructure investment. The government can explore increasing the budgetary allocation towards National Highways and Development Projects