Budget 2017: What does the automobile industry expect from FM Arun Jaitley?
The Indian automotive sector spotted a major slump in sales towards the tail-end of 2016. December in particular witnessed a drop in automobile sales by almost nineteen per cent – this is the steepest fall in sales in the last sixteen years. A sixteen year low in automobile sales figures and all fingers point towards demonetization. The influence it had on consumer sentiment drastically impacted sales.
Data released by the Society of Indian Automobile Manufacturers (SIAM) shows that sales of two-wheelers which comprise of seventy five per cent of total vehicle sales glided twenty two per cent in December two thousand sixteen compared to the figure in December 2015, marking the highest monthly spasm in the last twenty years.
While passenger vehicle sales for December two thousand sixteen slipped by 1.Four per cent over December 2015, three-wheeler sales fell the most by 36.23 per cent from 46,894 units in December two thousand fifteen to 29,904 units in Dec 2016. The total commercial vehicle sales, too, declined by Five.1 per cent in December 2016. Overall, vehicle sales slipped by nineteen per cent from 15.02 lakh units in December two thousand fifteen to 12.21 lakh units last month.
The figures are certainly concerning for anyone in the automotive sector and auto industry officials are surely expecting some major announcements to enhance consumer sentiment from the upcoming budget in order to recover from the demonetization punch.
“We sincerely hope taxes are not imposed intensely on the premium car segment. We expect the budget to be less imposing on the leisure vehicles and one which enhances consumer sentiment. We also hope for a critical thinking on environmental pollution and a plan to promote environmentally friendly vehicles,” said Tom Von Bonsdorff, Managing Director, Volvo Auto India.
Sr. Vice President Marketing, Jnaneswar Sen said, “Demonetization has affected the automobile sector geographically in certain parts more than others. If you look at the cascading effect of excise duties, VAT, road tax…the amount is large. Would be nice to have a more reasonable tax structure from the upcoming budget.”
Anurag Mehrotra, Exec Director Ford India, Marketing, Sales and Service said, “We believe the influence of demonetization would proceed into the entire quarter one of two thousand seventeen if not beyond. Therefore the early implementations of reforms like GST which will lead to administrative ease of doing business are the need of the hour at the earliest.”
Well, some automobile firms are looking forward to the GST but unequivocally they all expect the upcoming Union budget to suggest tax concessions and reforms which could spur consumer sentiment and request. Let’s wait and find out what the Finance Minister Arun Jaitley pulls out of his budget hat.
Budget 2017: What does the automobile industry expect from FM Arun Jaitley: Latest Auto News, News – India Today
Budget 2017: What does the automobile industry expect from FM Arun Jaitley?
The Indian automotive sector witnessed a major slump in sales towards the tail-end of 2016. December in particular eyed a drop in automobile sales by almost nineteen per cent – this is the steepest fall in sales in the last sixteen years. A sixteen year low in automobile sales figures and all fingers point towards demonetization. The influence it had on consumer sentiment drastically impacted sales.
Data released by the Society of Indian Automobile Manufacturers (SIAM) shows that sales of two-wheelers which comprise of seventy five per cent of total vehicle sales slipped twenty two per cent in December two thousand sixteen compared to the figure in December 2015, marking the highest monthly spasm in the last twenty years.
While passenger vehicle sales for December two thousand sixteen slipped by 1.Four per cent over December 2015, three-wheeler sales fell the most by 36.23 per cent from 46,894 units in December two thousand fifteen to 29,904 units in Dec 2016. The total commercial vehicle sales, too, declined by Five.1 per cent in December 2016. Overall, vehicle sales slipped by nineteen per cent from 15.02 lakh units in December two thousand fifteen to 12.21 lakh units last month.
The figures are undoubtedly concerning for anyone in the automotive sector and auto industry officials are surely expecting some major announcements to enhance consumer sentiment from the upcoming budget in order to recover from the demonetization punch.
“We sincerely hope taxes are not imposed intensely on the premium car segment. We expect the budget to be less imposing on the leisure vehicles and one which enhances consumer sentiment. We also hope for a critical thinking on environmental pollution and a plan to promote environmentally friendly vehicles,” said Tom Von Bonsdorff, Managing Director, Volvo Auto India.
Sr. Vice President Marketing, Jnaneswar Sen said, “Demonetization has affected the automobile sector geographically in certain parts more than others. If you look at the cascading effect of excise duties, VAT, road tax…the amount is hefty. Would be nice to have a more reasonable tax structure from the upcoming budget.”
Anurag Mehrotra, Exec Director Ford India, Marketing, Sales and Service said, “We believe the influence of demonetization would proceed into the entire quarter one of two thousand seventeen if not beyond. Therefore the early implementations of reforms like GST which will lead to administrative ease of doing business are the need of the hour at the earliest.”
Well, some automobile firms are looking forward to the GST but unequivocally they all expect the upcoming Union budget to suggest tax concessions and reforms which could spur consumer sentiment and request. Let’s wait and find out what the Finance Minister Arun Jaitley pulls out of his budget hat.