Hike in excise duty on automobiles signals jerky ride for public

Suhas Kadlaskar,director,corporate affairs,Mercedes-Benz India,said last year the auto industry was able to tide over the recessionary impact with the help of 4 per cent rollback of excise duty. “The Budget is a bit disappointing for the auto industry. Instead of partial rollback,the government should have continued the stimulus for one more year. Already,the excise duty at 20 per cent was high for the large cars and two per cent hike is counterproductive. The manufacturers will have to compensate it by passing on the hike to its products,” he said.

A Tata Motors spokesperson said the quantum of increase in excise duty would be passed on to its products. “We will weigh the challenges faced by the industry and will take appropriate steps. The development of infrastructure facilities and boost given to inhouse R&D are welcome steps,” he said.

Referring to hike in excise rates,Satish Sekhri,managing director,Bosch Chassis Systems,said car sales in India are largely of small and mid-sized cars. “However,even on the larger cars,where the excise duty hike will have an adverse effect,the impact on an EMI of Rs 5,000-6,000 will be an increase of Rs 200,” he said

Arun Firodiya,chairman,Kinetic Group said the 2 per cent increase in excise duty and increase in petroleum products is a fly in the ointment but is not harsh and would be taken into stride by the consumers. From the auto industry,I would give it 7/10,” he said.