New Government Continue Support to Auto Industry – Maruti Suzuki
Posted on May 19th 2009Welcome back!
Maruti Suzuki, the country’s largest car maker is expecting the new government to go on support to the poorly affected auto industry.
Mr. Shinzo Nakanishi (Md & CEO, Maruti Suzuki India) said that in Dec 2008, the government reduced petrol costs and cut the excise duty & interest rates also. These moves helped the industry a lot.
The company totally agree with SIAM’s (Society for Indian Automobile Manufacturers) view that the auto industry needs support from the government for survival. I hope the new government continues with the support and there are no excise duty hikes. I’ll be happy if there is a further excise duty cut.
- He added.
The Indian automobile industry has been facing its toughest time in the history. Auto industry has reported only 0.71% increase in the car sales in previous financial year. However this progress was observed because of the incentive packages proposed by the government.
As said by SIAM, the passenger vehicle sales would have observed a simple 3% or no progress at all, if no such stimulus packages would have been offered by government. In 2008-2009, these sales increased by 1.31% to the 12,19,473 units.
By editor in Auto Finance, Auto India News, Maruti Suzuki
Rahul responded on 19 May 2009 at 8:25 am #
Mr Shinzo Nakanishi has rightly pointed out that car industry cannot survive without support from government. I am sure they must be glad that UPA has come back to power again. Maruti Suzuki has a strong line-up of products. A little boost from the government will help increase its sales and help maintain its lead in the Indian car market.
Rahul
Indian Car Advisor
Armaan responded on 19 May 2009 at 10:16 am #
How is it that Mahindra cars are doing so well in recession also? I am not expert but I think two things are working for Mahindra. first the marketing of Mahindra is very good. second thing is that the Xylo itself is a very nice car or utility vehicle. When people find a good car at less prize, they buy immediately.