New Delhi: Commerce and Industry Minister Nirmala Sitharaman on Monday met representatives of automobile industry body SIAM and discussed challenges faced by the sector that is reeling under a prolonged demand slump. In the Interim Budget, the excise duty on small cars, scooters, motorcycles and commercial vehicles were cut to 8 percent from 12 percent earlier.
The same for SUVs was slashed to 24 percent from 30 percent, while on large cars it was reduced to 24 percent compared from 27 percent earlier and mid-sized cars to 20 percent from 24 percent previously.
India’s automobile industry has been struggling from a prolonged market slump. Car sales in India fell for the second consecutive fiscal in 2013-14 with a drop of 4.65 percent at 17,86,899 units as compared to 18,74,055 units in the previous fiscal.
In the 2012-13, car sales in India fell 6.69 percent, which was the first decline in a decade.
Last month car sales in India, however, grew 3.08 percent snapping two successive months of fall riding on positive sentiments over formation of a stable government at the Centre and lower excise duty in the interim Budget.
