It’s a good new for the automobile industry in India which has been reporting a strong growth in past some time. Both the car makers and buyers had their worried about expected rise in car prices post Indian Union Budget 2011 as there were speculations in the industry about a potential increase of prices because of excise duty increase expected. Also there has been no mention of any special change in small Diesel Engine car prices as proposed by the “Kirit Parikh committee” in their report. On taxes and reforms front also, the budgets is perceived to more or less neutral and does not hurt much to any specific industries. Since there has been no significant rise in taxes, it will help retain the purchasing power of the consumers to buy cars. We expected that Indian automobile industry will continue its good growth in the financial year 2011-12 as it has done on the current financial year.
The detailed analysis of budget will come out soon, stay tuned, we will bring you details when they arrive. You can sign up for our free email newsletter for daily updates.