Budget update - Hike in custom duty for imported cars surprising - Mr Michael Perschke.

Economic Times reported that Me Michael Perschke, Head, Audi India said that increase in Custom Duty for imported cars and Excise Duty on SUVs is very surprising. He said that "It will severely impact the auto industry and its growth.

We will have to seriously evaluate the impact of this hike on our prices and have no choice other than to pass on the increase to the customer. Overall it will have an adverse impact on automobile industry which is already going through a slowdown and specifically affect demand including that of SUVs.”

He said that “Currently the industry is facing pressure from a number of factors like increasing fuel prices high input costs, persistent inflation, high interest rates, the increase in excise and customs duty will be a dampener.

The government should have looked at extending support to auto industry which has been contributing significantly to the GDP and could have formed a strategic pillar of industrial development.”

He added that "We are happy to note that there is a renewed focus on infrastructure especially roads. The proposed regulatory authority on road construction will hopefully fuel better infrastructure and speed up developments.”

Finance Minister Mr P Chidambaram proposed to increase the excise duty on all sports utility vehicles and hiked the import rates of all luxury vehicles including super bikes.


Source : steelguru.com