Concern was also shown to the fact that vehicle industry was most highly taxed industry in India. Central and State Taxes account for prices being escalated by as much as 62% for small cars while for the larger and more luxurious models this figure goes upto 82%. This problem needs to be addressed so that people of India pay less for mobility as this will go a long way in improving all round economic development and growth in the country.
Society of Indian Automobile Manufacturers (SIAM) held their 52nd Annual Convention on the 6th September 2012. It was during this convention that greater stress was paid to growth in the auto sector. Taking the changing global conditions into account coupled with rising interest rates, high fuel prices and a not so steady economy it is only natural that industrial growth is on a downward spiral. First quarter of 2012-13 saw growth in passenger vehicles rise by just 9.71%.
During the convention it was also revealed that automakers in the country are not bogged down by falling demand. Top auto makers are going full steam ahead in the plans for greater investment. Force Motors will be investing Rs.1000 crores during the course of the coming three years to increase capacity and further develop new products. Audi, Volkswagen, Toyota andMercedes Benz also have similar investment plans and are optimistic of the Indian auto sector coming out of this slowdown mode.
India auto news release: SIAM's 52nd Annual Convention focuses on India's growth-centric initiatives for the auto sector in the coming years
Brings policy makers and industry leaders on the same platform to formulate ways to unlock growth potential of the automotive sector
The Society of Indian Automobile Manufacturers (SIAM) organized its 52nd Annual Convention focussing on the Auto Industry: India in the Changing World Order. Honorable Union Minister of Heavy Industries & Public Enterprises, Mr Praful Patel was the Chief Guest. S. Sandilya, President, SIAM welcomed the guests and delegates present in the convention.
S. Sandilya spoke on the resilience of the Indian automotive industry in the year gone by, addressing challenges such as inflation, high interest rates and rapid hikes in petrol prices. He referenced subdued industry growth which leads to successive downward SIAM revisions in sales forecast. While 2012-2013 Q1 growth in the passenger vehicles reached 9.71%, the fall in the Heavy Goods carrier SIAM Annual Convention 2012 saw global automotive industry leaders, speakers and policy makers from government sharing the same dais to address the dynamics of managing growth in all sector dip into negative territory (with Q1 decline of 17.88%), he drew a parallel to this sector's 2008 performances. He also addressed the government's taxation policies on the sector.
"While on the subject of industry performance, I must point out that the vehicle industry is the most highly taxed industry in the country. If we add up all the Central and State Taxes, the overall tax burden on cars ends up being as high as 62% for small cars and a whopping 82% for large cars." Speaking on the high taxes on petrol, he stated: "Personal mobility in the country would perhaps be carrying the highest tax burden in the country, as compared to any other engineering product or service."
Addressing the need for an appropriate level of taxation on mobility, he stated: "The people of India deserve to pay less for their mobility which also makes a huge contribution to economic development and growth"
The Chief Guest, Honorable Union Minister of Heavy Industries & Public Enterprises, Mr Praful Patel, spoke on the need to pursue a healthy rate of growth. "From an India perspective, until we grow at 8-9 percent, I don't think we can ever be satisfied with the rate of growth of the economy."
He spoke about the Electric Mobility Plan and the implementation of the Automotive Mission Plan 2006-2016in creating and executing a viable road map for the industry till 2016 and beyond, citing the ministry of Heavy Industries & Public Enterprises' investments in setting up new facilities to provide centres of excellence in various key cutting edge areas. He also echoed the industry sentiments against the diesel tax.
About SIAM
Society of Indian Automobile Manufacturers (SIAM) is the apex Industry body representing 46 leading vehicle and vehicular engine manufacturers in India. SIAM is an important channel of communication for the Automobile Industry with the Government, National and International organisations. The Society works closely with all the concerned stake holders and actively participates in formulation of rules, regulations and policies related to the Automobile Industry.
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