Budget 2015-16: Auto Industry reacts to the Union Budget

Reactions are pouring in from automakers on the proposals made by Finance Minister, Arun Jaitley with respect to automotive industry. Here’s a quick glance at these Executive responses – 

Rakesh Srivastava, Sr. VP, Sales & Marketing, Hyundai Motor India Ltd

“We welcome Initiatives on ease of doing business, Enhancing the global competitiveness of the Indian industry, Skill development for creating employment in rural sectors mom, rationalization of taxes for GST rollout & enhancing social security. will be a marginal increase of basic duties.  The service tax increase is not expected to have much impact on manufacturing, since there is a facility to offset it.”

Arun Malhotra, Managing Director, Nissan Motor India

“The industry would have benefited a lot had the excise duty benefits been extended but this budget has the potential to raise the consumer sentiment which will help the industry grow. There were concessions given on some identified components for EV’s in the past and these concessions continue for another year; we welcome this move”

Sumit Sawhney, Country CEO and Managing Director, Renault Operations in India

“Although the budget didn’t have much for the automobile sector, we are hopeful for some pro-business policies in the near future to benefit the industry. We hope for ongoing measures and policies to maintain a healthy balance between interest rates, inflation and arrest the fall of the rupee, which will benefit the economy.”

Arvind Saxena, President and MD, General Motors India

“The focus on rural roads, highways, expressways and incentives for electric vehicles are welcome decisions.  Some of the other announcements made by the finance minister on the direct taxation front are also positive steps.  Overall, the budget lays down a blue print for a stable tax regime that can lead to growth in the economy.”

Joe King, Head, Audi India

“We welcome the reduction of Corporate Tax as well as focus on infrastructure via various schemes and investments. However, we expected more of a direct support to the auto industry which has been contributing, significantly to the GDP.”

Chetan Maini, Outgoing CEO, Mahindra Reva (Via Twitter)

“Budget puts Electric Vehicles in gear. Look forward to a long term policy to enable India to  lead in this space.”

R Ramakrishnan, Senior Vice-President Commercial, Commercial Vehicles at Tata Motors Limited (via Twitter)

“One lakh kilometers of roads good for the Nation and the Commercial Vehicle Industry!”

Anders Grundströmer, Managing Director, Scania India

“While the increase in customs duty for commercial vehicles is disappointing , overall – the positives outweigh the negatives. The clear commitment to implement GST by 1st April 2016 which is a game changer, easing of norms to aid flow of technology, flow of capital, and focus on sustainable development along with a road map of clearly stated goals in terms of 1 Lakh KMs of roads, doubling the clean energy cess on use of coal and launch of a scheme for faster adoption are all measures in the right direction.”

Onkar S Kanwar, Chairman, Apollo Tyres Ltd

"The additional focus on roads and rail infrastructure along with an increased spend of Rs 70,000 crore will also prove to be beneficial for the economy as well as the tyre industry."