We expect government to come up with demand-side policy measures to provide a stimulus to the automobile sector. Increased budgetary allocation for research and development would help companies adopt more safety measures and compulsory crash test norms for passenger cars would become a reality. Concessional duties for greener cars and special custom duty concessions on Plug-in hybrids would further help towards realization of NEMMP2020 objectives. The industry also expects government to reintroduce concessional excise duty on vehicles and auto components and rationalise taxes in order to boost demand and help the industry to develop further.
We also expect budgetary support from the government to enhance the growth of the sector, resulting in more employment opportunities. ‘Make in India’ will drive global companies to set-up manufacturing facilities in India this, in turn, will create jobs.