Auto component manufacturers expect revival of sector post budget announcements
Updated: Feb 18, 2014 02:05:48pm
New Delhi, Feb 18 (KNN) The auto component manufacturers expect revival of the automobile sector including sub-industries like components, capital goods, raw materials, electronics, chemicals, plastics and software after Finance Minister reduced the duties for automobiles in the interim budget.
The auto industry, especially the small industry like auto component manufacturers which depend on the big manufacturers, have been reeling under stress due to low demands, said Managing Director of NFT, an auto part manufacturer, Naveen Jain from Manesar.
“There is a chain effect on the industry. If the demand for the cars is less, the demand for the auto parts goes down by default,” he added.
The excise duty on small cars, mid-size cars, motorcycles, scooters and commercial vehicles was reduced by 4 per cent. Duty on large cars saw a 3 per cent reduction while SUVs that had seen increase in taxation in the last few budgets, got a 6 per cent reduction.
At 8 per cent, excise duty on small cars now is at its lowest ever level. Car companies said the tax cuts would see an immediate reduction in prices of cars by Rs 10,000-400,000.
The auto parts manufacturers from Ludhiana also welcomed the announcement and said, “The most important thing is that people will start buying vehicles now. So, if the sales improve, the production, employment and manufacturing will also improve.”
"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," said a media report quoting, president, Society of Indian Automobile Manufacturers (SIAM) Vikram Kirloskarwas. (KNN/SD)
The auto industry, especially the small industry like auto component manufacturers which depend on the big manufacturers, have been reeling under stress due to low demands, said Managing Director of NFT, an auto part manufacturer, Naveen Jain from Manesar.
“There is a chain effect on the industry. If the demand for the cars is less, the demand for the auto parts goes down by default,” he added.
The excise duty on small cars, mid-size cars, motorcycles, scooters and commercial vehicles was reduced by 4 per cent. Duty on large cars saw a 3 per cent reduction while SUVs that had seen increase in taxation in the last few budgets, got a 6 per cent reduction.
At 8 per cent, excise duty on small cars now is at its lowest ever level. Car companies said the tax cuts would see an immediate reduction in prices of cars by Rs 10,000-400,000.
The auto parts manufacturers from Ludhiana also welcomed the announcement and said, “The most important thing is that people will start buying vehicles now. So, if the sales improve, the production, employment and manufacturing will also improve.”
"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," said a media report quoting, president, Society of Indian Automobile Manufacturers (SIAM) Vikram Kirloskarwas. (KNN/SD)
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