Indian auto sector revenues increased by 33 per cent

Indian domestic auto market had a huge growth last year resulting in an increase of 31 per cent in the auto mobile and auto motive firm. The Indian government was elated with the increasing revenues which they received in terms of taxes accrediting to the increasing sales.

As per the reports, the revenue received from the Indian auto mobile sector raised to 33 per cent which calculates to be Rs 6,198 crore from April to January 2010-11. It was reported that the steep growth in terms of revenues from the auto mobile sector is backing on the stringent automobile growth.

It was reported that the total exports from the period April to January 2010-11 was at 1.93 million cars. The Indian government stated that the Government of India has taken quite a few steps to push the auto industry as well as the exports. The efforts includes establishing the auto mobile testing, research infrastructure and homologation via National Automotive Testing and RD Infrastructure Project (NATRIP) in the seven cities in India.

It seems to be well returned by the auto manufacturers, the Indian government presented the Budget 2011 which has created positivity for the Indian auto mobile sector. The government has taken several measures in favour of the Indian auto sector which will help in curbing the increasing auto mobile prices. Government has reduced the custom duty on raw steel which will directly favour the Indian auto sector as it will be able to purchase the finished version at cheaper prices. The government has not raised the excise duty over the cars, which is again a great respite when the commodity prices are rising. As a result of the Budget 2011, it seems that at present there will be no hike in the car prices.

He hoped that the implementation of all the measures announced in the Union Budget today would fuel growth of overall economic activity and have a positive impact on the automotive industry.

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