Carmakers Ask Government To Extend Excise Duty

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Indian automobile manufacturers have asked the government to extend the excise duty relief, which will come to an end this 31st of December. They feel removing this would take the auto industry into a bad state.

The government had slashed excise duty on automobiles in February to help increase demand for cars, SUVs and two-wheelers. It was extended for another six months in June.

Sumit Sawhney, the CEO and Managing Director for Renault India said, "I had welcomed the government's move when they had announced to maintain the reduction in excise duty six month's back and I think the government should continue to do so going forward as well."

R C Bhargava, the Chairman for Maruti Suzuki said, "At this point, if the excise duty goes up, it could easily push the car industry into the negative territory."

The auto industry feels that the excise duty relief needs to be continued because the automotive industry is not performing as good as expected.

Vishnu Mathur, the Director General for Society of Indian Automobile Manufacturers (SIAM) said, "We are requesting the government to continue the excise duty reduction as the industry has not fully recovered. Continuation of excise duty relief will help the recovery of the industry."

Automobile sales in India dropped 2.33 percent in October, being the second month in a row, after it dropped 1.03 percent in September, after four months of growth.

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Story first published: Monday, December 1, 2014, 11:51 [IST]
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