Congratulating the Union Finance Minister, P Chidambaram, President ACMA, Harish Lakshman, said, “We are glad that the Finance Minister, given the circumstances, has unveiled a pragmatic budget.
ACMA welcomed reduction in excise duty on auto components (under Chapter 84 and Chapter 85) from 12% to 10% and on Vehicles – CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively.
“The automotive industry has been reeling under significant pressure for quite sometime now, the announcement on reduction in excise duty is timely and will uplift consumer sentiments, as well as help boost the sagging morale of the automotive sector allowing for capacity creation and employment opportunities.
In addition, the reduction in excise duty on capital goods from 12% to 10% will stimulate the industry for higher investments in manufacturing,” lakshman added. Lakshman further added,
“The auto component industry in India aspires to be one with its own design and engineering capabilities, setting up of an exclusive Research Funding Organisation is a step in right direction and will motivate the industry in realising this vision.”
The industry body also expressed satisfaction on the focus on infrastructure development, education, skilling and attracting investments in manufacturing. It appreciated the measures announced for sustaining growth and scaling-up of the manufacturing sector, in particular the MSMEs.