Auto Makers Relieved As Reduced Excise Rates Extended Till Dec
The reduction in excise duty, given to the auto sector with an aim to give some impetus to sagging sales, is applicable till June 30 which has now been extended till December 31.
While welcoming the development, General Motors India Vice-President P Balendran said: "We hope government will extend it for the full year in the Budget as the sector continues to be sluggish. We also expect government to announce other measures in the Budget to revive the growth."
Society of Indian Automobile Manufacturers (SIAM) Executive Director Vishnu Mathur termed the development as "a big relief for the auto industry,".
Commenting on the development, a Tata Motors spokesperson said: "The excise reduction was a positive step for the automobile industry and we are glad to see it extended as it will help the industry while we await other significant policy decisions to revive the economy."
India's automobile industry has been struggling from a prolonged market slump. Car sales in India fell for the second consecutive fiscal in 2013-14 with a drop of 4.65 percent at 17,86,899 units as compared to 18,74,055 units in the previous fiscal.
In 2012-13, car sales in India fell 6.69 percent, the first decline in a decade.
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