Automobile Industry in Budget 2008

Hi All.

Most of the car freaks know what’s new happening in the automobile industry. But are we aware of the latest government policies? Yes our government knows the requirement and hence I expected something in this Budget.  Here I am giving you a little snapshot of our budget on automobile industry.

Mr. P. Chidambaram, the Finance Minister of India, presented the Union Budget for the financial year 2008-2009, in the parliament on 29th February, 2008. Here are some of the declarations made by the Indian Union Minister of Finance Mr. P Chidambaram, regarding the Indian automobile industry. 

The automobile industry was one of the focus areas of Budget 2008 due to the high growth in this industry and the much talked about launch of the cheap small car by Tata Motors, the Nano. The initiatives taken by the Ministry to propel growth of this industry were mostly in line with the pre-budget expectations. The reduction in excise duties was welcome by the Indian Automobile industry but it was quick to point out that the much talked about area of Automobile loan was not touched upon.

The minister proposed reduction of excise duties on small cars from 16% to 12%. However this reduction is not expected to bring down the price of Tata Nano. It is rather expected to add to the profitability of the project.

The Indian three and two-wheeler sector were also offered similar reduction in excise duties. The excise duties on buses and chassis were also curtailed. Moreover, the excise duty on the hybrid vehicles was also curtailed from 24% to 14% in the Indian Union Budget 2008-2009. But no such reduction on excise duties in the big car segment or exports was announced, which was much on the wish list of the Indian car manufacturers.

The Indian automobile manufacturers further feel that the farm loan waiver may add to their concern of auto loans, which is a major problem in this sector. The Indian two-wheeler market is registering a downturn and the farm loan waiver to the tune of Rs. 60,000 crores may choke the liquidity of the market and the banks may be more than unwilling in forwarding auto loans.

Let see how beneficial these proposed policies prove to be for indian automobile buyer. 

 

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~ by gizmoghost on April 22, 2008.

One Response to “Automobile Industry in Budget 2008”

  1. automobile industry in budget 2008 is a memorising

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