It is an important day today as Finance Minister Arun Jaitley announces the last budget by the Modi Government. While every sector in the country is eyeing the Union Budget 2018, the automobile sector in India is also hoping for positive reformations. The electric as well as premium car manufacturers have emphasised the fact reduce GST rate to 5 per cent on all electric vehicles and electric vehicle subsystems. Some have also expressed a relaxation on personal income tax, that is believed to be a key element of Union Budget 2018. Here are all the live updates from the 2018 Union Budget that concerns OEMs as well as accessory and ancillary manufacturers.
Union Budget 2018: How does it affect the Indian automobile Industry?
Here are some of the points taken from Union Budget 2018 verbatim that will directly or indirectly affect the reach, sales and other aspects of the automobile industry in India. Click here to read.
Union Budget 2018 analysis: Fuel prices down, corporate tax cut, luxury cars more expensive
To wit, the drop is corporate tax should make medium and small industries more profitable. The cut in fuel prices via the excise cut will also help. But on the hand, luxury cars are about to become even more expensive. Read more here.
Union Budget 2018: Reactions from the Indian automobile industry
Here is Nawneet Vibhaw, Associate Partner, Khaitan & Co.,Jatin Ahuja, founder and managing director, Big Boy Toyz and Rajeev Singh, Deloitte have to say about the Budget 2018. Read here
Expectations from Budget 2018
"To operate in any market, carmakers need reasonable tax rates. Current GST tax rates at 48% for sedans and 50% for SUVs in the premium segment are extremely high. To help expand the market and generate more jobs, we would urge the government to not only reduce these taxes to reasonable levels, include left out taxes such as road tax etc. within the GST regime, but also ensure stabilization/longer-term policies and tax regimes" - Rohit Suri, President & Managing Director, Jaguar Land Rover India
Expectations from Budget 2018 -
"Now is the time to look at immediate solutions that lower emissions and provide incentives. This will serve as a stepping stone for 2030 full electric ambition. Hybrid cars offer the best solution to bring the carbon footprint down with immediate effect and make urban air quality better" - Charles Frump, MD, Volvo Auto India
Increase in MSP will further boost tractor sales, currently growing at 16%
Jaitley mentions that 35,000 km will be completed under Bharatmala project with outlay of Rs 5.35 lakh cr before moving on to the initiatives in Railways.
Railways capex for FY19 will be at Rs 1.48 lakh cr, he says.
Tunnel for Se-La pass in Arunachal Pradesh
"Have proposed the construction of a tunnel under the Se-La pass in Arunachal Pradesh.Proposal to develop 10 prominent tourist destinations as Iconic tourism destinations," says Jaitley.
No longer waiting at toll plazas for more Fast Tags enables boots. One doesn’t need to be a VIP anymore.
Fast replacement of conventional toll collection by Fast Tags that has been increased from 60,000 to more than 1 lakh boots. New cars will be sold with RFID tags by default.
The government will allocate Rs 9,000 crore for 90km of double-line tracks for Mumbai
9k kms construction of National Highways started by Hriday Yojna started
Throwback to Union Budget 2017 - "GST implementation is positive for the auto sector on the whole"- Lohia Auto Industries http://bit.ly/2Es6RMq
Throwback to Union Budget 2017 - "Expectation of reduction in corporate tax rates was not met" - Maruti Suzuki India Ltd http://bit.ly/2Es6RMq
Throwback to Union Budget 2017- "RS 64,000 crore allocated for National Highways in India" http://bit.ly/2nqUlW9
"We want relaxation on personal income tax, as a key element of Union Budget 2018" - Roland Folger, MD and CEO, Mercedes Benz India http://bit.ly/2nnHtAo
"We see unreasonably high GST as one of the key impediments to faster adoption of electric vehicles in the country and as one of the main stumbling block in achieving the electric-green vehicle adoption target" - Society of Manufactures of Electric Vehicles (SMEV) http://bit.ly/2nnHtAo
Here are the live updates, announcements and reactions from the 2018 Union Budget from the automobile sector