We are inching towards the magical date of 28th Feb, 2015 - the day when government would present Budget 2015-16. With a strong contribution of 7% in country's GDP, Automobile sector undoubtedly is a significant segment in defining our growth. Riding on high hopes from our Finance Minister, Mr. Arun Jaitley, here is what the top layer of auto sector has to say about Budget 2015;
Mr. Sumit Sawhney - Country CEO & MD, Renault India
“In the year gone by, the most important development for the Indian economy was the formation of a stable Government. We have seen some positive policy decisions and look forward to sustained pro-business interventions to boost the economy, and in turn benefit the automobile industry. The automobile industry features in the ‘Make in India’ program, and has been identified as one of the 25 thrust sectors outlined for growth. Together with its role in making India a manufacturing powerhouse, we hope that the Government includes some customer friendly policy decisions which will build customer confidence and in turn boost sales.”
“The industry is hopeful that the excise duty reduction is reintroduced, as from a long-term perspective, a unified excise duty structure will go a long way to benefit the industry. We are also looking forward to the implementation of the GST bill, which the Government has tabled in Lok Sabha, which will play a significant role by creating a uniform tax structure across all states.”
“We also want the Government to introduce a scrappage incentive scheme which will keep older cars off the roads. This will benefit the environment, reduce fuel consumption and also propel further demand for greener and efficient vehicles. Together with this, we hope for measures and policies to maintain a healthy balance between interest rates, inflation and arrest the fall of the rupee, which will benefit the economy and the automobile industry alike.”
Mr. Vimal Sumbly - Managing Director, Triumph Motorcycles India
“Considering the fact that India has an aspiring & vivacious consumer base that has the zeal to explore new experiences and avenues, it is definitely a place every brand should be present in. But the need of the hour is a more conducive environment. The govt. in the upcoming budget should look at cutting down excise duty. This is necessary to not only boost the overall sentiments of the business environment but will also effectively aid the ‘Make in India’ campaign.”
“Another step that Govt. can take to boost the industry would be to reduce the repo rate by RBI. This will boost investment in the economy and help the already existing companies by positively stimulating demand and also increase liquidity in the market. Moreover, post the Govt. withdrawing excise duty benefit from the auto sector forcing car and two-wheeler makers to increases prices by 1-5%, this rate cut will help bolster sales as consumer loans would get cheaper. To support the ‘Make in India’ campaign, it would also be good to see some relaxation in the clearance procedures for Infrastructural projects.”
“Another interesting approach the Govt. can take which can effectively boost the premium motorcycle industry in India would be to cut import duty on products which don’t conflict with the already existing Indian manufacturers. For instance, reduce duty on motorcycles that are 800 cc and above. No Indian manufacturer sells in that segment and hence will not adversely affect the Indian grown businesses and will simultaneously support foreign luxury manufacturers.”
“For any manufacturer, the expectation from the Govt. will just be with regards to making the environment more encouraging and also to trim down the extremely high duties allowing us to be relevant to a larger section of people.”
Steffen Berns, Managing Director of Bosch Limited and President of Bosch Group in India.
"An inclusive and growth oriented budget would help in the revival of the auto industry. To this end, the annual budget would need to stimulate the flow of investments in key sectors which in the long run would also help boost the consumption. I am looking forward to:
1. The implementation of GST-which will help grow GDP
2. Focused approach towards sustainable infrastructure development, specially roads, railways and ports
3. Measures that improve the ‘Ease of doing business’: A clear roadmap including transparent process oriented way with defined timeframe for clearances
4. Fiscal discipline and control on fiscal deficit"
Roy Kurian, Vice President – Sales and Marketing, Yamaha Motor India Sales Pvt. Ltd.
“As we approach the budget day, the eyes are getting wider with expectations from the majority government at the centre and their first full term budget. Their ‘Make in India’ campaign is indeed a great initiative to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure. Like every player in the auto sector, we too are yearning for the continuation of the excise duty cut especially on the components and early implementation of GST. Also, the interest rates need to be brought down to make vehicle financing attractive for the consumers. We are looking forward for some steps in the direction of improving the road and power situation particularly in rural India which will encourage two-wheeler growth. The sector has also pinned its hopes on falling fuel prices, controlled inflation, improved tax slabs leading to more disposable incomes and stalled infrastructure projects getting the go-ahead — all of which may pump up the economy.”
Mr. Arun Malhotra, Managing Director, Nissan Motor India Private Limited.
“Positive economic reforms such as lowering of interest rates, long term stability in excise duty structure and introduction of uniform tax structure can help in stable and sustained growth of the industry. The consumer also has lot of favourable expectations from the Union Budget in terms of Direct Taxes which will give extra money in the hands of consumer and help revive the consumer sentiments in the market today. Nissan India also expects a rollback in excise duty, implementation of GST and introduction of better schemes to promote exports from the country showcasing Indian capability globally.”
Mr. Gurdeep Soni, Chairman and Managing Director, Uniparts India Limited
"It is a forward looking budget as the government has announced positive initiatives for the farming and agriculture sector like focusing on increasing productivity and the target of Rs 8.5 lakh crore of credit for agricultural sector. We believe, technology and automation will play a strong role in the growth of the sector and will make way for boosting demand for tractors and off-highway vehicles in the allied sectors."
