Automobile industry fumes as Budget 2013 turns SUVs, imported cars costlier
Lowell Paddock said the Budget did not meet expectations as far as the automotive industry is concerned.
"We were expecting the roll back of the excise duty imposed last year... These hikes are not on the expected lines and will impact the sale of SUVs," he added.
Ford India President and MD Joginder Singh said the company is disappointed with the Budget as there is very little to boost consumer confidence and revive growth.
"It is a missed opportunity to introduce measures that would have revived industrial growth significantly. As we all know the automotive industry has been going through very challenging times, we are disappointed with the increase in the excise duty for SUVs," he added.
Two-wheeler maker Suzuki Motorcycle India Vice President (Sales and Marketing) Atul Gupta said the company will not raise the prices of its imported super bikes like Hayabusa.
"While the raise in customs duty is not helpful, we do not envisage a significant impact on the demand in the 800 cc above category. As of now, we will not increase the price of Suzuki superbikes. Given the considerations that go into the purchase of a superbike, we do not foresee a significant change in market size or demand patterns," he added.
Finance Minister P Chidambaram today proposed to hike the basic customs duty to 100 per cent from 75 per cent earlier on luxury vehicles with prices over USD 40,000 and engine capacity exceeding 3,000 cc for petrol and 2,500 cc for diesel options.
While presenting the Budget, he said:
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