Auto industry wants more benefits in Budget 2009

The stimulus package which was dedicated for auto industry last year proved fruitful enough. The auto industry regained traction, with sales of cars and two-wheelers posting double-digit growth. Truck sales, however, have been an exception and continue to decelerate as a direct fallout of the economic meltdown.

 Now the auto industry wants more benefits like than slashed excise duty in the new Budget. “We expect a similar tax concession in the upcoming budget to incentivise customers to buy new vehicles and create additional demand,” said Maruti Suzuki CEO and MD S Nakanishi.“The government should simplify the complex tax structure for the auto industry. A uniform tax should be levied on all cars, irrespective of their size or dimension,” said Honda Siel Cars India president & CEO Masahiro Takedagawa.
 The automotive lobby has asked the government to introduce concessional tax structure for vehicles used in rural areas to revive demand.

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