Audi, the German luxury car maker has witnessed tremendous growth in the last one year and now in the time of automobile sales going slow, the union budget also poses a threat with the hike excise duty which could adversely affect the sales.
Michael Perschke, Head, Audi India rated the budget 6 out of 10 and stated ``The increase in excise and customs duty on large cars in this budget is very surprising. This increase comes at a time when the Indian automotive industry was finding favor with customers looking for better and efficient cars. We may now need to re-evaluate our pricing strategy in India.’’
He further added that, ``However we do welcome the positive announcements on increase of investments in infrastructure and encouragement to private investment which should drive higher growth in the economy. The revision and reduction of personal tax slabs will result in increased savings and possibly higher spends. The GDP growth forecast of 7.6 percent for next financial year also augurs well for the country and we expect India to remain one of the most vibrant consumer markets.’’
Union Budget 2012-13 has resulted in the increased excise duty on all large cars (all cars outside small car segment). The duty has gone up to 24 per cent from the current figure of 22 per cent, also a fixed duty of Rs. 15,000 will result in the total excise duty of 27 per cent.Automobile News