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February 25, 2000

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Sector report: Automobiles

Dun and Bradstreet India

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Key Players
Ashok Leyland, Bajaj Auto, Bajaj Tempo, Daewoo Motors, Eicher Motors, Escorts Yamaha Motors, Fiat India, Ford India, General Motors India, Greaves, Hero Honda Motors, Honda Siel Cars, Hindustan Motors, Hyundai Motors India, Kinetic Motor, LML, Mahindra & Mahindra, Maruti Udyog, TELCO and TVS Suzuki

Existing Custom Duty (%)
Item 1999-2000
Two Wheelers 40
Motor Vehicles 40
Commercial Vehicles 40
Tractors 40
   
Existing Excise Duty (%)
Item 1999-2000
Two Wheelers (<75cc) 16
Two Wheelers (>75cc) 24
Motor Vehicles  
(upto 6 seater plus driver) 40
Motor Vehicles  
(7 to 12 seater plus driver) 30
Motor Vehicles  
(13 seater & above) 16
Commercial Vehicles 16
Tractors (<1800cc) 8
Tractors (>1800cc) 16

Background

  • One of the key indicators of growth, the automobile sector has had a good drive so far in 1999-00.
  • There has been all-round growth in production in each segment of the automobile sector (except scooters) after recording lacklustre performance for the previous two years.
  • Growth of the commercial vehicle segment is particularly noteworthy.

Expectations from the Budget

  • Higher depreciation allowance to facilitate faster scrapping of commercial vehicles by transport operators.
  • Measures to improve road transport infrastructure.
  • The only dark cloud on the horizon is the auto industry's concern that the government may lift quantitative restrictions on second-hand car imports.

ALSO SEE:

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Fiscal report card

SECTOR ANALYSIS:




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