Companies across the two sectors, including Maruti Suzuki, Honda, General Motors, LG India, Godrej Appliances and Whirpool, felt the government's move gives a much needed stimulus to the industry as it leads up to the festive season. JPN/Agencies
Reactions from automobile, consumer durable firms
Maruti Suzuki India Chief Operating Officer (Marketing and Sales) Mayank Pareek: It will be good for the auto industry. The momentum that has been built in last few weeks will continue.
Mahindra & Mahindra Executive Director Pawan Goenka: This will give the much needed boost to industry as we lead up to the festive season.
Honda Cars India Senior Vice-President (Marketing & Sales) Jnaneswar Sen: The industry has had a tough couple of years. We had just started seeing some rays of hope last month and with this extension of the reduced excise rates, we can look forward to building the momentum. The announcement from the government clears the uncertainty of what will happen after June 30 deadline and is a much needed support to the industry from the new government.
General Motors India President and Managing Director Arvind Saxena: We hope government will extend it for the full year in the Budget as the sector continues to be sluggish.
LG India Sales Head Sanjeev Agarwal: We welcome this announcement, it will certainly boost industry.
Godrej Appliances Executive Vice President, Sales & Marketing, Kamal Nandi: The move would benefit the industry, which is started growing in the last six month after a stagnation of nearly two years.
Tata Motors spokesperson: The excise reduction is positive step for the automobile industry. We are glad to see it extended as it will help the industry while we await other significant policy decisions to revive the economy.
Hyundai Motor India Ltd (HMIL) senior VP-Sales and Marketing Rakesh Srivastava: This will create positive environment for the industry. Continuation of the current duty will help in enhancing customer desire to own cars in future.
Whirlpool of India Vice President (Corporate Affairs & Strategy Asia South) Shantanu Das Gupta: The (excise duty concession) extension is good news for the industry as it partially mitigates the cost pressures that the industry has faced.
Samsung spokesperson: This will continue to benefit growth as well as local manufacturing in the sector during the forthcoming months including festival sales.
Hero MotoCorp Managing Director & Chief Executive Officer Pawan Munjal: The need of the hour is a long-term, consistent and uniform excise policy for the benefit of customers and sustainable revival of the industry. It would have been better, therefore, if it was extended till March 2016. The auto sector still continues to be sluggish and a sub-normal monsoon is likely to further dampen demand both in rural as well as urban areas.
Ford India President Nigel Harris: The decision reflected the government's recognition of the importance of the manufacturing sector and its contribution to overall economic growth. This extension will most certainly help in further uplifting consumer sentiment and boosting demand. With the upcoming budget, we will continue to work with SIAM to jointly identify opportunities that may aid the future growth of the automotive sector for government’s consideration.
Nissan India Chief Financial Officer Sunil Rekhi: The company will continue to pass the benefit of the reduced excise duty rates to its dealers and customers. However, the recent increase in freight cost, rising fuel prices, high interest rates and the weak monsoon forecast play a dampening effect in the overall economic growth and tough market conditions that is being faced by us.
ACMA President Harish Lakshman: Considering the fact that the industry is yet to tide over the current challenging times, we hope that the announcement would encourage automotive sales and thus benefit the component sector as well.
Extension of excise cut to pay more dividends: India Inc
Welcoming the government's move, India Inc said the decision will pay dividends in terms of higher growth in industrial production, even as it hoped for further extension.
CII Director General Chandrajit Banerjee: CII in its pre-budget Memorandum for 2014–15 has asked for extension of the stimulus package up to March 31, 2015. We hope that further extension will be considered by the government keeping in view the negative growth in Automobiles as well as Capital Goods Sectors during the financial year 2013-14.
Assocham President Rana Kapoor: It is a bold and courageous decision. We are confident that it will pay dividends in terms of higher growth in industrial production.
M M Singh, Chairman of Ficci Manufacturing Committee and Chief Mentor, Maruti Suzuki India Ltd: This is indeed encouraging for the manufacturing sector which had witnessed a deceleration last year. This has sent a strong signal also to the industry that Government is according high priority to the manufacturing sector so as to create jobs in the country. We are hopeful that the forthcoming Budget would further provide measures for the long-term sustainable growth of the sector.
PHD Chamber of Commerce president Sharad Jaipuria: The move will build confidence in the industry and send good signals out that the BJP-led NDA government is pro-active and committed to introduce similar reforms to the economy in the forthcoming budget so that the growth is revived and additional demand generated with the new jobs opportunities.
Companies across the two sectors, including Maruti Suzuki, Honda, General Motors, LG India, Godrej Appliances and Whirpool, felt the government's move gives a much needed stimulus to the industry as it leads up to the festive season.