Finance Minister Pranab Mukherjee presented the Union Budget 2011 in the parliament today. As far as automobile industry is concerned the budget was breather as it proposed no excise duty hike as predicted earlier. So, there will be no car price hike for now. Many experts feel that it is the wise decision as raw material prices are on the rise from last year which already cost many price hikes in automobile industry.
Automobile sales, which has been growing at the rate of 30%, will continue to ride high though the sector is still concerned about rising input and fuel costs. Some analysts feel that continuation of duties will give an opportunity for automobile companies to go for increase in prices which were postponed due to the assumption that price hike would lead to reduction in demand.
Karl Slym, President & Managing Director, General Motors India said about the Union Budget 2011, “As far as the automotive industry is concerned, the budget is on the expected lines. The Government’s intention to reach consensus with state governments and introduce GST bill in the current session of the parliament, introduction of DTC by April 1, 2012, setting up of National Mission for Hybrid and Electric Vehicles are welcome decisions.”
Led by Bajaj Auto Chairman Rahul Bajaj , the automobile industry has praised Finance Minister Pranab Mukherjee’s decision not to raise excise duty on vehicles in the Union Budget today. “It is a good budget… I congratulate Pranab Mukherjee for not raising excise duties on vehicles,” Bajaj told media.
Source: Economic Times
