Finance Minister Arun Jaitley came up with the much-awaited first full-term budget today. The automobile industry was very optimistic about it and kept a lot of hope for some favorable decisions, especially on the taxation front, but most demands raised by the auto companies were not addressed and no major sops were extended as well.
The demand for the lower excise duty benefit also went unaddressed, which came as the biggest disappointment for the auto sector. In an effort to help the industry tide over a demand slump the previous UPA government had given an excise duty rebate in its interim budget last year, in which the excise duty on SUVs was reduced to 24 per cent from 30 percent, 20 percent for mid-sized car from 24 per cent, and 24 per cent for large cars from 27 per cent. This lowered excise structure was then extended for another six months till December 31 by the current BJP-led government, but in January it was rolled back and the excise duty slab came to the original structure once again.
In order to bring positive sentiments among buyers, auto manufacturers were also expecting a tad decrease in the auto loan interest rates, but Jaitley hasn't addressed this issue as well in the union budget.
On the whole, there has been very little to cheer for the Indian auto sector as there was no specific announcement for the same.
