Budget reaction by Eaton Corporation

After the anouncement of the Union Budget 2011-12, here are the reactions by the Eaton corporation. Krishnakumar Srinivasan, Managing Director –Truck Division - India, Eaton Corporation said that they welcome the government’s decision to set up the National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles. Moreover the cut in excise duty to 5% and exemption of customs and CVDs on imports indicate a clear will to promote clean energy for mass transportation. He further added that the hybrid technology for mass transit was recently introduced during the CWG on TATA buses, while globally, vehicles running on our hybrid systems have already completed 160 million kilometers. He also said that they are hopeful that these steps by the government will pave the way for us to leverage our capabilities in providing cleaner energy for the mass transit.

Ramchandhra Rao, executive director ,Automotive Division,India, Eaton Corporation also commented on the budget 2011-12. He said that the decision to keep the excise duty intact is at 10% is very positive for the automotive industry. This will help the industry to keep the momentum of growth witnessed in the last two years. He said , that at a time when the country is battling inflation, this will help the auto industry to remain price competitive. As leading suppliers of engine valves, we at Eaton believe that this will set a positive outlook for growth.

Raja Kochar, Managing director, India, Eaton Corporation also commented on the unioin budget , he said that at the outset, 2011 budget has been directionally positive in many ways. One can see clear steps to promote core sector growths leading to a higher economic growth. We are encouraged by the fund allocation steps to promote infrastructure growth which will propel the growth of construction equipments industry that impacts us as suppliers of vital hydraulic components for them. The unchanged excise duty is a boost for the automotive segment to drive volumes. As a tier 1 supplier for engine components for passenger vehicles and transmissions for commercial vehicles, we see potential in the coming year to register strong business growth. The overall manufacturing sector’s double digit growth rate also looks very encouraging. However the proposed increase of MAT from 18 % to 18.5 % is a setback. This move will further make SEZs a less attractive option for companies considering expansion.

Commenting on the cut on excise duty on hybrid cars, Raja Kochar, Managing director – India, Eaton Corporation said that, the auto industry is elated over the government’s decision to set up the National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles. Moreover the cut in excise duty to 5% and exemption of customs and CVDs on imports indicate a clear will to promote clean energy for mass transportation. He further added that the hybrid technology for mass transit was recently introduced during the CWG on TATA buses, while globally, vehicles running on our hybrid systems have already completed 160 million kilometers.

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