The auto industry’s estimate of passenger vehicle sales of between 40.5 lakh and 41.5 lakh in the next fiscal will be supported by the Union Budget 2023-24, which already provides many things. demand creation, Maruti Suzuki India Senior Managing Director, Marketing & Sales, Shashank Srivastava said on Thursday.
With the growth of the auto industry “very highly correlated” with the economy as a whole, he said Finance Minister NIrmala Sitharaman’s Budget “Maruti Suzuki, Budget 2023″ ticked ” most umbrellas” related to the automotive industry.
“We have predicted growth of between 4.5% and 7.5% (in terms of passenger vehicle sales), i.e. around 4.05 million to 4.15 million, for next year (2023-2034) This year, the industry will end up at around 3.85 million (units),” Srivastava told PTI.
He added that when making predictions, it is expected that there will be no major fluctuations in tax rates and other factors affecting auto demand, with inflation, crude oil prices and commodity prices remaining. stable.
“Automotive growth is highly correlated with overall economic growth… In that respect, any Growth-driven Budget is good for the auto industry and we’ve seen that in the Budget of the day. yesterday that that budget is growth oriented,” said Srivastava.
From an auto industry perspective, he added, “It (Budget) meets most requirements.”
He listed the finance minister’s proposals, such as a 33% increase in investment in infrastructure development to $10 lakh crore, extending the Center’s 50-year zero-interest loans to states and adjusting tax tables for taxpayers, will help create demand for cars.
“The problem with capital investment is, it not only creates demand in the short term but also in the long term… On the supply side, it creates capacity, which is essential for growth. So that’s fantastic. in that respect, as it also creates jobs,” said Srivastava.
The second aspect of the Budget that will help the auto industry, he added, is greater disposable income in the hands of consumers through the new tax regime.
Srivastava added: “Economically higher disposable income leads to a higher propensity to spend, so that’s a positive. In addition, the government has announced the removal of more than 900,000 government vehicles. and that will also create good replacement demand.”
In those respects, he said, “I think it’s a very good budget for the auto industry.”
Date of first publication: February 3, 2023, 08:15 AM IST
