In the last couple of years, premium car market in India has seen a substantial growth and Audi has seen its fair bit of ups and downs over the last year. Fellow German automaker Mercedes-Benz overtook the title of India's largest luxury automaker from Audi, courtesy of 15 launches for 2015 portfolio, but that doesn't seem to be slowing down the company's momentum. Audi is looking forward to the union budget, as factors like excise duties amongst others are vital in determining the potential of success for its car models. Joe King, Audi India head, gave us his insights in an exclusive interaction:
Q1. What are your expectations from Union Budget 2016? Overall what do you think is the industry sentiment with respect to budget 2016?
The Government had presented a budget with focus on long-term growth of the country in FY 2015-16 and we expect a similar budget this year which is Pro-growth. Improving consumer sentiment and creating demand is a priority for both the industry and the government, and we expect the forthcoming budget to address this.
Q2. What are the top 3 things you would like to see from the Union Budget 2016-17 that would favorably impact the auto industry?
The simplification of tax structure will be a big step forward as currently differential pricing and taxes across states makes it very complicated. Therefore, introduction of GST will go a long way in helping in ease of business.
Reduction in excise duty on cars and SUVs will go a long way in boosting sentiments of the entire auto industry that accounts for a significant share of the country's manufacturing gross domestic product (GDP) and is one of the biggest job creators, both directly and indirectly. Continued focus on improving road infrastructure is also a prime area of interest for entire auto industry.
As manufacturers, we also need clarity on policy direction vis-à-vis automobile industry so that we can amend our strategy in line with the customer demand and future government regulations.
Q3. What are the learnings government should take from the 2015 budget?
We welcomed the move towards the rollout of GST, which will help in ease of business and would like to see it implemented. We were also happy to note the emphasis placed on boosting infrastructure and this should definitely be a focus for the current year as well. This will go a long way in fulfilling the government's vision to make India the fastest growing large economy in the world.
Q4. According to a recent survey, 70% of buyers would be interested in hybrid vehicles if relevant sops are extended for them. What would be your plans to cater to latent demand for "Green"vehicles?
Luxury to us is a choice. We take a long-term view about providing choices to our customers. Today, there is an increased awareness on sustainability related issues amongst people the world over and I think India is no different. We are watching the developments in this area very closely and when the time is right we will introduce such vehicles from our global portfolio.
Q5. Any additional inputs or comments on the budget?
We are happy to note that the GDP growth in FY17 is likely to be between 7 and 8 percent which is impressive in the current global scenario. We are looking forward to a revival in customer sentiment which would contribute to higher consumption.
