Expectations in Automobile Industry
The Indian auto industry which was resilience to the global slowdown in now expecting some goodies from finance minister that will set the boom.The industry is praying that the stimulus packages roled during the slowdown year shouldn’t be taken back, as it is, there has already been an increase in Cenvat rate for excise duty by two per cent. Strong lobby is working to reduce the Custom Duty rates.
Auto industry is expecting a decrese in the two wheeler, car and three wheelr loan. The industry also fears that if the stimulus package given last year is withdrawn the price of cars may increase. A hike of 1-2% of service tax and 2% in cenvat is also expected. It is also expecting a reduction in the reduction of import duty of hybrid cars which will incresase in the compettion
The budget will be favorable to Ashok Leyland and Tata Motors because of the increased allocation under the JNNURM for buses.