Auto sector hopes Narendra Modi-led govt will bring in reforms

May 16 2014, 20:23 IST
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The industry also hoped that the new government would keep the excise duty rates at the existing level to help the sector come out from a prolonged demand slump. The industry also hoped that the new government would keep the excise duty rates at the existing level to help the sector come out from a prolonged demand slump.
SummaryThe industry also hoped that the new government would keep the excise duty rates at the existing level to help the sector come out from a prolonged demand slump.

CEO Vipin Sondhi said that with a stable government at the helm the company hopes "that mechanisms will be put into place to ensure that the top twenty projects of national importance are implemented expeditiously".

Automotive Component Manufacturers Association (ACMA), the apex body for the Indian auto component industry, said that the new government should work to bring back footfalls to the auto dealerships.

"The recent excise rate cut in the interim budget needs to continue for some time, as also interest rates need to be brought down to make vehicle financing attractive for the consumers," it added.

Mahindra & Mahindra Executive Director & President (Automotive, Farm Equipment & Two Wheeler Sectors) Pawan Goenka said the new government must focus on reviving the economy and bring in credible governance as it has come with high expectations.

"For the automobile industry, we don't have a specific expectation at the moment. Our only wish is to continue with the pleasant surprise the previous government had given by cutting excise duty at least till the next Budget," he said.

Focus must be on to get stalled infrastructure projects going again and revive mining activities, as these would spur demand in the auto sector.

"In the first year, one would expect implementation of GST, which would be the single biggest factor to jump start the manufacturing sector," Goenka said, adding for the GDP to grow at 8 per cent the manufacturing sector needs ot clock over 10 per cent growth.

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