The Auto Industry could be in for a surprise

The auto Industry has already faced its share of stubs in the past. However, this does not detain the Industry from expecting a surprise from the North Block. According to news media, Resources are limited and the expectations are running high. The article below discusses about this subject at length, which might seal the fate of the automobile industry in the long run.

India’s Finance Minister P. Chidambaram would be making one final attempt to revive the Auto Industry, as he presents the last economic statement, on the 17th of February. However, according to the CNBC TV 18 reports, despite numerous snubs in the past, the auto industry is still hoping for a surprise from North Block. P. Chidambaram has been walking a tight-rope, as he had to reign in the fiscal profligacy. However, the fancy ideas of the automobile industry crashed, when the FM introduced taxes for the SUVs. NCP Leader Praful Patel, at a recent conference also mentioned that the government should try to exempt all vehicles, whose value is below Rs. 10 lacs, from paying taxes. Patel has always been chalking out measures, to provide the automobile Industry with the assistance and leverage, it needed. In the recently concluded Auto Expo, Delhi 2014, Patel was responsible for seeking permission, for the auto Expo to be conducted at Pragati Maidan. This was to mitigate issues such as space constraints and accommodation.

Several senior executives in the industry told CNBC-TV18 that at most the slowdown can be sustained for another six months. A lot of investment is being currently put on hold, keeping in mind the fact that the Automobile Industry is going through a downturn. While most investors are waiting for the auto Industry to revive, the others are just are aiming to bring in some stability to this industry. Praful Patel’s contributions, towards the growth of the Automobile sector in India. In a letter to the finance Minister, Patel mentioned about providing the industry with a stimulus. However, this time around, the difference between this communication vis-à-vis the previous ones was the fact that he specifically mentioned the decline in excise duties that the industry needed from 12 percent to 8 percent.

The interim budget of 2009 saw the Finance Minister introducing excise cuts, when Pranab Mukherjee had brought down the excise duties to 10 %, which previously stood at 14%. In addition, he had also introduced the Jawaharlal Nehru National Urban Renewal Mission (JnNURM). Probably, this is one reason that the Auto Industry is expecting a turn-around from the North Block, sometime soon. On the flipside, Heavy Industries Minister Praful Patel is leaving no stone unturned, to ensure success and revival for the auto Industry. The process might take some time, however, it would be here to stay for good. Concisely, like every other industry does, the Automobile segment is going through a rough patch. There is no doubt about the potential that rests within the automobile sector. It is just a matter of time, before this sector scales newer heights, yet again.

NCP Leader Praful Patel also promoted Diesel as a future fuel, at one of the recent SIAM’s conference. For more Praful Patel information, follow him on his social networking sites including Facebook, Google+ and YouTube Channel.