Union Budget 2019 reaction: Increase in customs duty could lead to increase in prices - Martin Schwenk, Mercedes-Benz India
Finance Minister, Nirmala Sitharaman presented the Union Budget 2019 today. The Budget 2019 covered the topics of efficient public transportation, alternate methods of commute for commercial vehicles, national transport card for universal payment of tolls, tickets for road and rail and retail shopping. It also covered the national highway development plan that will further improve connectivity in the country. Here's a detailed reaction from Martin Schwenk, MD & CEO, Mercedes-Benz India.
"We welcome the Government's vision of achieving a three trillion dollar economy and becoming the sixth largest economy in the world by end of this year. However, the decision to increase the customs duty on automotive parts was not expected and it is not going to help create demand in the industry which already is facing continued, strong macro-economic headwinds, resulting in subdued consumer interest. The increase in custom duty coupled with increased input costs due to the fuel price hike, could lead to an increase in the price of our model range. Though the budget has given a boost to green mobility, we wished for the inclusion of Plug-In-Hybrids for duty exemption as well, as that would have further given a push to the green mobility efforts."