ACMA, the apex body representing India’s auto component sector, welcomed the announcement on reduction of excise duty on vehicles and select auto components in the Interim Budget 2014-15.
Congratulating the Union Finance Minister, P Chidambaram, President ACMA, Harish Lakshman, said, “We are glad that the Hon’ble Finance Minister, given the circumstances, has unveiled a pragmatic budget. ACMA welcomes reduction in excise duty on auto components (under Chapter 84 and Chapter 85) from 12% to 10% and on Vehicles – CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively. The automotive industry has been reeling under significant pressure for quite sometime now, the announcement on reduction in excise duty is timely and will uplift consumer sentiments, as well as help boost the sagging morale of the automotive sector allowing for capacity creation and employment opportunities. In addition, the reduction in excise duty on capital goods from 12% to 10% will stimulate the industry for higher investments in manufacturing.”
Lakshman further added, “The auto component industry in India aspires to be one with its own design and engineering capabilities, setting up of an exclusive Research Funding Organisation is a step in right direction and will motivate the industry in realising this vision.”
The industry body also expressed satisfaction on the focus on infrastructure development, education, skilling and attracting investments in manufacturing. It appreciated the measures announced for sustaining growth and scaling-up of the manufacturing sector, in particular the MSMEs.
ACMA is the Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection & dissemination of information has made it a vital catalyst for this industry’s development. ACMA’s charter is to develop a globally competitive Indian auto component Industry and strengthen its role in national economic development as also promote business through international alliances. ACMA is an ISO 9001:2008 certified Association.