Auto industry had placed several demands before the union minister. Several of them have been ignored in this year's budget. Additional excise duty exemptions, speeding up GST implementation, lowering interest rates for vehicle loans etc were a few of the demands put forth by auto industry. Out of these, assurance has been given about speeding up the implementation of the GST- Goods and Services Tax. The other demands have been ignored.
Corporate taxes have been reduced from 30% to 25%. Also government has reiterated its focus on infrastructure. These steps may indirectly boost the auto industry. Rs.75 crore has been earmarked for electric vehicle manufacturing. The current exemption in excise duty for electric vehicle manufacturing will continue to exist.
Apart from a few good things explained above, auto industry has nothing to be happy about in the current budget.