Bumps ahead for auto sector
26.02.10
S. Amrita Hamsin
BL Exploration Bureau
Although the Minister of Finance proposed excise hike may not be a big ask for the automotive industry to handle the challenges created by higher fuel prices and rising costs of raw constituents and the imminent change in the standards of 'Issue of May and the queer cast for the sector, at least in the short term.
Small cars that have hitherto tax of 8 per cent excise duty will incur 10 per cent incidence and the duty on big cars will be taxed at 22 percent, with an increase of Rs 15,000 (cons 20 cent plus Rs 15,000 previously).
Acuity ball
Budget Officer, Maruti Suzuki India and Hyundai were among the first to submit price tags on their cars by Rs 3000 Rs 13,000 and Rs 6,000-Rs 25.000 severally, and other players will follow suit.
The rapid evolution of these car manufacturers suggests that insurance companies of self-have on the demand for their products. Despite the increase of two percent, the binary structure is lower than it was in the early months of 2008-09 and earlier years.
Source: Hindu Business Line