2010 Budget Automobiles Industry Expectations

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Like all other industries, business houses, and general people, Indian automobile industry is also looking forward to the forthcoming budget and is expecting a lot from it. The automobile industry is expecting a reduction in the interests on car loan and two-wheeler loan. The reason is quite simple - lower interest rate would attract more number of buyers.

However, Indian automobile industry fears that the forthcoming budget may make small and big cars more expensive, as there is a possibility of rolling back of stimulus package that surged the car and SUV sales last year. The stimulus package brought down the duty on small cars from 12% to 8%, while the duties of big cars reduced from 24% to 20%.

The industry also expects an upward revision in service tax. It is anticipating a hike of 1-2% in the service tax. 2% hike in Cenvat may also be there, which would make small cars costlier by ` 2,000 to ` 10,000. The price of two-wheelers may also rise from ` 600 to ` 1,500.

Indian automobile industry is also apprehending that the government may reduce the import duty on hybrid cars from 60% to 50%. This would further stiffen the competition.

However, the industry is also expecting a relief in the form of decrease in specific excise duty on cars and SUVs with engine size more than 2,000 cc. This would bring down the car price by ` 15,000.

Basanta Malakar, City:-Kolkata, Posted On :-2010-02-03 14:55:16
Direct Income tax reduction
RANJAN, City:-Bangalore, Posted On :-2010-02-04 01:56:43
hitendra, City:-Nagpur, Posted On :-2010-02-04 15:22:40
mohit, City:-Haryana, Posted On :-2010-02-06 18:19:28
vishwa kiran, City:-West Bengal, Posted On :-2010-02-08 10:02:15
1. increse of incomtax slab for salaried employees. 2. decrease inthe rate of motorbicles. 3. decrease in the rate of colour t.v.
vishwa kiran, City:-West Bengal, Posted On :-2010-02-08 10:02:22
1. increse of incomtax slab for salaried employees. 2. decrease inthe rate of motorbicles. 3. decrease in the rate of colour t.v.
Alexander Winston, City:-Kerala, Posted On :-2010-02-08 10:20:06
Good budget which will take care the need of the middle income group which is not take care till now most of the time it is just ignoring this big group who is suffering from inflation of price and paying high tax on the other had the rich or the poor is not effected by this
N. GOPAL KRISHNA, City:-Bangalore, Posted On :-2010-02-08 16:32:49
priority for automobile industry
, City:-Mangalore, Posted On :-2010-02-09 18:38:57
a good budget for daily expenditures
Rupma Kumari, City:-Assam, Posted On :-2010-02-11 15:05:10
increase income tax slab
johnson pradeep raj, City:-Noida, Posted On :-2010-02-13 11:27:39
Nadeemahmed Qureshi, City:-Pune, Posted On :-2010-02-15 16:12:49
vehicle cost should be decreases

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