It is really great to note the growth figures witnessed by automobile players in Feb-2007. Maruti sales grew by 60%+, Hyundai grew by 70%+, GM growth was 80%+, Ford statistics was 60%+.....and so on..
This is the time our Finance Minister should have done something to add party to the figures. Industry has been demanding since long uniform excise duty of 16%. Current scenario is 16% in A and B-class segments only. For C, D and above classes this figure is 32%.
If we want Industry to grow more and exports to rise substantially I feel, this duty should be dropped to 16%. Let us see a simple logic. If the prices will be reduced, demand will increase, leading to more production, leading to more players getting attracted to produce the vehicles in the country, giving more job opportunities, leading to the country becoming a base for manufacturing, bringing in new technologies and thus the country gaining edge in the global scenario to make vehicles at competitive prices.
Whether it is because of scale of economies or it is because of the learning curve, we need to have strong domestic base before we can target overseas business. We are now producing substantial numbers in B-segment. Similarly we should produce substantial numbers in C and D class also.
1 comment:
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