2011 Union Budget Highlights on Auto Industry
T he 2011 Union Budget was creating a big fear among the auto manufactures on Exercise duty but there was no change in excise duties which comes as a relief to the auto sector. This means excise duty on small cars remains at 10%, large cars and SUVs continue to attract 22% excise duty. In a decidedly eco-friendly step, the minister proposed the setting up of a national mission on hybrid vehicles and electric vehicle (EV) as well as special incentives for hybrids if made in India. T he announcements made in the Budget are aimed at making Electric and Hybrid technology cheaper and popular in India. H ybrid cars manufactured in India will see a excise duty reduction of 5 percent. We expect that the global manufactures to bring their hybrid vehicles into India. Full exemption from basic customs duty and a concessional rate of Central Excise Duty extended to batteries imported by EV manufacturers. So for Pure EV and Hybrid vehicles manufactures ...