Auto Makers Relieved As Reduced Excise Rates Extended Till Dec

However, in May, snapping two successive months of fall, car sales in India grew by 3.08 percent riding on positive sentiments over formation of a stable government at the Centre and lower excise duty in the interim Budget.

Commenting on the excise cut extension on automobiles till December 31, Toyota Kirloskar Motor Vice Chairman and Whole-Time Director Shekar Viswanathan said: "The auto industry is going through difficult times and we expect the government would take cognisance of this when coming out with the new financial bill in July 2014".

Renault India Country CEO and Managing Director Sumit Sawhney said the extension of excise duty reduction for automobiles is a welcome move and a step in right direction by the government, fortifying its intent to support the progress in the auto sector.

"We would like the government to take a long term view to have a unified excise duty structure and look forward to further reduction in the duty," he added.

SIAM President Vikram Kirloskar said the extension of the reduced excise duty will contribute positively to improve the buyer sentiment and would help in bringing about a sustained recovery in the automotive industry that has been languishing for over two years now.

"This will go a long way in bringing back growth, investments in the industry as well as encourage higher employment," he added.

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