Automobile Sector

The Automobile sector in India has experienced a faster rate of growth in the recent years. Indian Auto makers have stepped forward by operating globally. The Motor Industry registered a growth rate of 22% till September 2006.

In the coming India budget 2007, it is expected that the Government will reduce the excise duty on the cars from the prevailing rate of 24 percent. The customs duty is also expected to come down from the present rate of 12.5 percent.

Various chambers view on automobile sector in the coming budget 2007 is as follows:

Confederation Of Indian Industry (CII): The Confederation Of Indian Industry has asked for the reduction in the excise duty to 16 percent from the present rate of 24 percent on various types of passenger vehicles. In case of the two wheelers the CII demands for a reduction in excise duty to 8 percent.

Federation of Indian Chambers of Commerce and Industry (FICCI):

The Federation of Indian Chambers of Commerce and Industry on its view has shown that the automobile sector has grown at a rate of 22 per cent till September 2006. For achieving further growth rate and earning more revenues the excise duty rates should be reduced.