Volvo-Eicher seeks fiscal measures to spur CV gross sales, Auto Information, Automobilnews – Information by


Volvo-Eicher seeks fiscal measures to spur CV gross sales, Auto Information, Automobilnews

Mumbai: Eicher Vehicles & Buses, part of Volvo-Eicher Industrial Autos, has known as for fiscal measures to spice up progress within the heavily-taxed auto sector. The corporate, which Monday unveiled the nation’s first BS-VI-compliant new vary of light-duty vehicles beneath its Professional 2000 collection, additionally mentioned it plans to speculate Rs 700 crore this fiscal, part of which is able to go into including capability and so forth.

The BS-VI-compliant truck launch comes 9 months forward of the brand new emission norms coming into impact subsequent April.

The auto sector has been reeling since many months and the small and heavy industrial car section was the worst hit with the quantity declining 11.61 p.c in Could.

The corporate blamed elements akin to the continued NBFC disaster, the brand new axle-load norms, election-induced building uninteresting in addition to slowing progress have for falling quantity. Calling for fiscal measures, it mentioned mere rate of interest discount is not going to assist the sector revive volumes.

“The RBI has lower repo charges. However that isn’t going to learn auto gamers a lot as NBFCs, which have been closely into funding auto purchases, will not be getting funds for a lot of months now. Subsequently, fiscal measures akin to discount in taxes are required, because the auto sector is closely taxed,” mentioned Vinod Aggarwal, managing director and chief government at Volvo Eicher Industrial Autos, mentioned.

He mentioned a number of years again, authorities had “promised” to cut back company tax to 25 p.c and withdrew incentives like further depreciation, and tax advantages on R&D as a part of a roadmap for reforming the company tax regime.

“Although the incentives have been eliminated,firms proceed to pay taxes based on the previous system,” he rued and urged authorities to both cut back taxes or restore the incentives.

Aggarwal, nonetheless, sounded optimistic in regards to the industrial car section as he expects the brand new authorities to push infrastructure spending.

He mentioned the corporate is investing Rs 800 crore to arrange a brand new plant in Bhopal with an preliminary capability of 40,000 models and one other Rs 400 crore to develop new truck cabins and new engines and in direction of BS-VI implementation.

Aggarwal mentioned its Pithampura plant in MP has already reached 90,000 models annual capability, and with the commissioning of the Bhopal plant subsequent April, whole capability will attain 1.30 lakh models.

He mentioned to ramp up home market share, it plans to concentrate on truck quantity and the Bhopal plant might help obtain this by including one other 40,000 models every year.

“We is not going to require a brand new plant within the subsequent 10 years as this capability can be suffice to satisfy the demand,” Aggarwal mentioned, including at present its vegetation are working at 80 p.c of put in capability.

Volvo-Eicher seeks fiscal measures to spur CV gross sales, Auto Information, Automobilnews – Information by


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