Auto cos want new govt to rationalise excise structure

New Delhi: The Indian automobile ind u s t r y wants the new government to c o n t i nu e promoting the sector as a key economic driver and has asked for removal of differential excise structure for different size of vehicles.
“First and foremost (there should be) no reversal of financial stimulus packages announced over the last six months,’’ Mahindra & Mahindra president, automotive sector, Pawan Goenka said.
He said the government must also “review and amend large differences in excise duty on different sizes of vehicles’’.
At present, passenger vehicles above 1,500cc engine size attract additional excise duty of Rs 15,000-20,000 over and above the 20% excise they attract. Maruti Suzuki India MD Shinzo Nakanishi, who had already stated the government should not hike excise duty, said: “Backed with this verdict I am sure the new government will re-enforce its initiatives to promote the automobile industry as a key economic driver.’’
Congratulating the UPA on its decisive victory, Hero Honda Motors MD and CEO Pawan Munjal said: “This mandate will strengthen the hand of the central government to unlock long awaited reforms in multiple sectors for the feel good factor to return to the economy.’’
Goenka also said the government should focus on demand generation via a series of initiatives suggested by the industry at various times.
SIAM had said that had it not been for the stimulus packages, passenger vehicle sales would have been down 3% or no growth, while commercial vehicles would have had a decline of 30-40%. AGENCIES