Small auto component manufacturers see recovery in orders this year

New Delhi, Mar 11 (KNN) The recent incentives provided to the auto sector such as excise duty cut have given a fillip to the small auto component manufacturers as they are seeing positive signs of recovery in their orders from the big companies.

“This year, the auto component makers are more competitive in comparison to last year as the market is better this year,” said Managing Director of NTF India, Naveen Jain.
“The small auto component manufacturers are getting new orders this year as the sale of domestic passenger cars is expected to grow,” he added.

“The recent excise duty cut and the announcements in the interim budget have created a positive sentiment but it is too early to say if that can translate into sustained automobile sales trend,” Jain said.

Finance Minister P Chidambaram, in the interim budget 2014-15, reduced the central excise on small cars, scooters/two-wheelers from 12 to 8 per cent.

He also reduced the central excise from 30 per cent to 24 per cent on SUVs (sports utility vehicle), and medium segment sedans from 27-24 per cent to 24-20 per cent, respectively. (KNN/SD)