The automobile industry has been battling several headwinds and stakeholders were looking forward to Budget 2021 with bated breath.
So, has the Budget been able to address the concerns of the sector?
Speaking to Sakshi Batra on Money9 Budget Conclave, Shashank Srivastava, Executive Director, Maruti Suzuki said the budget has met his expectations.
“The budget looks growth oriented. Under present circumstances, the government has committed to a lot of spending, especially in the infrastructure sector,” he told Money9.
The biggest takeaway for the automobile sector is also the Vehicle Scrappage Policy.
Hailing the policy, Srivastava said: “Automobile industry’s long-term fortunes are dependent on GDP per capita income. What helps in the growth of the economy is good for the industry. In demand front, Vehicle Scrappage is welcome. We don’t know what the policy is exactly as details are not out yet. So, it is difficult to comment. But we welcome the announcement.”
Dismissing concerns on agriculture cess, Srivastava said: “The final retail price of fuel may not be affected. Fuel has excise duty, road cess and now added agri cess. It has been adjusted against excise duty and additional excise duty. So net effect on retail price of fuel might not change. Should the retail price change, it is negative. I am glad it was clarified that it will not be affected.”
But did the Budget live up to the billing of ‘once-in-a-hundred years’ budget?
“We had out of the box thinking like depreciation being offered to private consumers, loan deduction of car purchase for income tax purposes. But we understand that the government has a lot of fiscal constraints so while I can talk about one industry, the government is the best judge to decide on spending,” he said.
