Volvo-Eicher seeks fiscal measures to spur CV gross sales, Auto Information, DFL
The corporate, which Monday unveiled the nation’s first BS-VI-compliant new vary of light-duty vans underneath its Professional 2000 sequence, additionally stated it plans to take a position Rs 700 crore this fiscal, part of which can go into including capability and many others.
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 business automobile section was the worst hit with the quantity declining 11.61 % in Could.
The corporate blamed components similar to the continued NBFC disaster, the brand new axle-load norms, election-induced development uninteresting in addition to slowing progress have for falling quantity.
Calling for fiscal measures, it stated mere rate of interest discount won’t assist the sector revive volumes.
“The RBI has reduce repo charges. However that isn’t going to learn auto gamers a lot as NBFCs, which have been closely into funding auto purchases, should not getting funds for a lot of months now. Subsequently, fiscal measures similar to discount in taxes are required, because the auto sector is closely taxed,” stated Vinod Aggarwal, managing director and chief government at Volvo Eicher Industrial Automobiles, stated.
He stated a couple of years again, authorities had “promised” to scale back company tax to 25 % 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,corporations proceed to pay taxes in response to 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 business automobile section as he expects the brand new authorities to push infrastructure spending.
He stated 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 the direction of BS-VI implementation.
Aggarwal stated its Pithampura plant in MP has already reached 90,000 models annual capability, and with the commissioning of the Bhopal plant subsequent April, complete capability will attain 1.30 lakh models.
He stated to ramp up home market share, it plans to deal with truck quantity and the Bhopal plant may help obtain this by including one other 40,000 models every year.
“We won’t require a brand new plant within the subsequent 10 years as this capability could be suffice to fulfill the demand,” Aggarwal stated, including at present its vegetation are operating at 80 % of put in capability.