The budget is encouraging due to its focus on infrastructure, education, agriculture, irrigation, health care and social security schemes. Since it addresses some of the concerns of the industry in general, it should help fuel demand and economic growth going forward.

As far as the automotive industry is concerned, the budget did not fully meet the expectations as the sector continues to remain sluggish. Besides a marginal reduction of Rs.5,000 (which we will pass on to our customers) imposed on bigger cars and MUVs sometime last year over and above the excise duty of 20 per cent, we have not seen any relief on the excise front on the budget for passenger car industry. We were expecting the excise duty of said categories of vehicles to be brought down to the CENVAT level.

The automotive industry is one of the growth drivers of the economy and as such some tax relief would have helped the industry to generate some volumes. Having said this, government's intention to introduce GST with effect from 1st April 2010 and reduce the CST by 1% are welcome decisions. Removal of FBT and commodity transaction tax is also welcome decisions.

Some of the other announcements made by the finance minister for manufacturing and R&D activities should enhance the competitiveness of Indian industry. The intention to further promote the development of infrastructure, particularly in rural areas, is a positive step. The government's commitment to continue with its reform process is likewise positive. These proposals, if implemented effectively, should have a positive impact on industry and the economy as a whole. The challenge now is the implementation of the proposals and schemes announced in the budget. Our hope is that the market will respond favorably.

General Motors India has two state-of-the-art manufacturing facilities at Halol in Gujarat and Talegaon in Maharashtra. General Motors India manufactures the Chevrolet Optra Magnum, Chevrolet Aveo, Chevrolet SRV, Chevrolet Aveo U-VA, Chevrolet Spark, Chevrolet Tavera and Chevrolet Captiva for the Indian market.

Courtesy: General Motors India

Best Selling General Motors (Chevrolet) Cars:
Chevrolet Aveo (Sedan)
Chevrolet Optra (Sedan)
Chevrolet Tavera (SUV)
Chevrolet Captiva (SUV)
Chevrolet Spark (Hatchback)
Chevrolet UVA (Hatchback)
Chevrolet SRV (Hatchback)

Related News:
High-end car prices to fall soon
Opel unveils Insignia ecoFLEX Diesel-Powered Sports Tourer
Spark’s diesel variant by GM India to come alive
JD Power releases 2009 vehicle initial quality study report

Related Books:
General Motors
My Years with General Motors
The Art and Colour of General Motors

Add a comment

Posted by Naresh Koshti on 8 July, 2009 3:01:47 PM IST #