Union Budget 2010 has been out there for some time and we have still not recovered from the bitter fact that cars are going to cost more now. Some car manufacturers even went a step ahead and increased prices of their cars even before the budget was read. Talk about beating the competition!
But auto industry analysts have welcomed the Budget saying that it is actually going to benefit the auto industry in the long-run. Another authority which seems mighty pleased with the Union Budget is the Society of Indian Automobile Manufacturers (SIAM).
SIAM has welcomed the Union Budget 2010-11, branding it as a reform focused growth oriented Budget in the background of economic downturn. Dr. Pawan Goenka, President, SIAM and President – Automotive, Mahindra & Mahindra, is quick to point out the positive proposals of the Budget.
He said that the correction in Excise duty on Electric Vehicles will enable the manufacturers take CENVAT credit and exemption of Customs duty on Electric Vehicles parts. Dr Goenka also welcomed the increase in weighted deduction for in-house R&D to 200% from 150% and outsourced R&D from 125% to 175%.
So it means that electric vehicles will cost lesser now. All that sounds good. But considering that electric vehicles are not much popular among the Indian customers, relaxation in customs duty on electric vehicles certainly does not bring any kind of joy to us.
Dr. Goenka also said that 2% hike in Excise duty was expected and should not have adverse impact on the market. That’s about the market but what about the people on whom the auto manufacturers have already passed on the cost burden.
So what if you have to pay more to purchase the vehicle that you have always wanted to, it does not wreak havoc in anyone’s life – definitely not SIAM’s, at least.
But auto industry analysts have welcomed the Budget saying that it is actually going to benefit the auto industry in the long-run. Another authority which seems mighty pleased with the Union Budget is the Society of Indian Automobile Manufacturers (SIAM).
SIAM has welcomed the Union Budget 2010-11, branding it as a reform focused growth oriented Budget in the background of economic downturn. Dr. Pawan Goenka, President, SIAM and President – Automotive, Mahindra & Mahindra, is quick to point out the positive proposals of the Budget.
He said that the correction in Excise duty on Electric Vehicles will enable the manufacturers take CENVAT credit and exemption of Customs duty on Electric Vehicles parts. Dr Goenka also welcomed the increase in weighted deduction for in-house R&D to 200% from 150% and outsourced R&D from 125% to 175%.
So it means that electric vehicles will cost lesser now. All that sounds good. But considering that electric vehicles are not much popular among the Indian customers, relaxation in customs duty on electric vehicles certainly does not bring any kind of joy to us.
Dr. Goenka also said that 2% hike in Excise duty was expected and should not have adverse impact on the market. That’s about the market but what about the people on whom the auto manufacturers have already passed on the cost burden.
So what if you have to pay more to purchase the vehicle that you have always wanted to, it does not wreak havoc in anyone’s life – definitely not SIAM’s, at least.
posted by admin @ Wednesday, March 10th, 2010 1 Comment » link to this post
Hi there can I quote some of the insight from this post if I link back to you?