Auto sector sees lower duties, cheap credit from Budget

The auto sector has started showing signs of revival as can be seen in the first quarter numbers. The budget wish list for the automobile industry includes lower excise duty and cheap credit. CNBC-TV8's Swati Khandelwal reports reports on the budget wish list of the auto industry.

Here is a verbatim transcript of Swati Khandelwal's comments on CNBC-TV18. Also watch the accompanying video.

Well the auto sector did get some respite and showed signs of revival after the two fiscal stimulus packages that were announced before the budget but the industry still wants more to keep the momentum going. We understand that the budget wishlist for the automobile industry includes lower excise duty and cheap credit. We also understand that they have asked for export sops and more tax concessions for sale in rural areas. Rural areas penetration is still very low and that is where most of the auto makers want to expand. We also understand that they have asked for easy credit or finance along with lower rates of interest on auto loans. Remember financing has been a huge matter of concern. All automakers across the segment right from the two wheelers to the car makers and the commercial vehicles segment. We also understand that they have asked for removal of additional levy on big cars. Government has imposed Rs 15,000 for cars which had engine over 1.5 litres and Rs 20,000 extra to be paid as excise duty on cars which have engines over 2 litre. So that should be removed is what the auto industry demands. We also understand that they have asked for CST should go down by 1% and clear time line for GST should come in By April 2010. They have also asked for creation of special auto components parks and continuation of tax holiday for Export Oriented units. So a whole host of things that the auto industry has asked for but let us see what all actually comes in this budget.

Also Read: Auto Ind sees roll back of excise duty cut: ICICIdirect.com