2016 was a rough year
for the automobile industry; it has gone through a roller coaster ride with
some government decisions like diesel ban, GST and demonetization hampering the
overall industry growth projected for FY 2016-17. Auto industry contributes
7.1% to the country’s GDP and has been on an evolving note. It is the only
industry that took the PM Modi’s Make in India project on its head and
contributed the best.
The industry is currently recouping and hence
a lot of friendly announcements are expected in the Budget 2017 to further
boost growth.
Relaxation on excise duty - The industry is expecting lowered as
well as uniform excise duty structure. This will essentially reduce vehicle
cost and boost sales.
Faster implementation of GST - The Industry will be expecting the
implementation of GST, proposed to come into effect from July 1, 2017, without
further delay.
Clarification on vehicle scrappage policy - The industry will be
keeping its ear to the ground for announcements on incentives, timeline and
fleet modernisation under the scrappage program.
More incentives for hybrid and electric vehicles – Along with the
FAME India scheme, the industry still expects lower taxes and benefits for the
segment to grow in the country.
Reduction in interest rates - Indian automobile industry will be
expecting government to reduce interest rates on auto loans for passenger as
well as commercial vehicles.
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All of us are hoping for a
favorable budget this year as last year despite all positive scenarios the
industry felt short of its projection. This year if all of these announcements
are made than there will be no stopping as the industry alone contributes a lot
in terms of revenue, employment, Foreign Direct Investment. As the new and old
vehicle market go hand in hand, we expect tremendous boost in the demand of
pre-owned market altogether. Sameer Malhotra, CEO SAMIL
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