Friday, 16 March 2012

2012 Budget - Impact on Indian Automobile Industry

The Budget 2012 was the much awaited one, though no one was expecting a positive move for the Indian Automobile sector and here it is. Below are the highlights of the same.

  •           Share of Manufacturing in GDP to Increase from 15% to 20%
  •       Government plans to make 8,800 Kms of Highway
  •       Avg. fuel price in FY2011-12 has been $115/barrel, which affected the growth of Auto sector in current year
  •       Standard excise duty hiked from 10% to 12%
  •       Raise duty on  Large cars from 22% to 24%
  •       Custom duty on bicycles increased from 10% to 30%
  •       Custom duty on bicycle parts increased from 10% to 205
  •       Raise custom duty on import of vehicles from 50% to 75%
  •       Import of aircraft parts exempted from Customs duty list
  •       FY13 Fuel subsidy at Rs 43,580 Cr
  •       Basic customs duty on Hybrid vehicles to remain the same – however, Battery parts included under cover.
  •       Based customs duty on vehicles costlier than $ 40,000 has been increased from 60% to 75%
  •            Advalorem duty on commercial vehicles body manufacturers reduced from 10% to 3%


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