Indian Budget 2016: What is the impact on Indian Automotive industry

09 Mar 2016

In India lately the Union Budget 2016 was presented by Finance Minister Arun Jaitley. Jaitly sparked strong reactions from the automotive industry, particularly from the passenger vehicles manufacturers. Here is an summary.

New taxes with an noxious effect on the Indian automobile industry:

The budget proclaimed by Jaitly, India's Finance Minister, mainly concentrates on investment in rural India as well as infrastructure development. It has allocated Rs 970 billion over the next fiscal year on improving and building new roads and highways.

The government has also introduced a new tax on cars sales aimed at fighting high levels of air pollution and congestion. Indeed India has some of the most polluted cities in the world such as Delhi, which is even more polluted than Beijing. However, soon after the temporary ban of sales of large diesel cars in Delhi by the Supreme Court, the new tax represents further disappointment for vehicle manufacturers as they were expecting much more from the Union Budget 2016.

Read the full article here.