India’s Automotive Components Manufacturers Association (ACMA) has welcomed the announcement of a reduction in excise duty on vehicles and certain auto components in the Interim Budget, 2014-15.
“We are glad the Finance Minister, given the circumstances, has unveiled a pragmatic budget,” said ACMA president, Harish Lakshman. “ACMA welcomes [the] reduction in excise duty on auto components 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.
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“The automotive industry has been reeling under significant pressure for quite some time 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.”
