Auto Budget 2016: Additional Cesses May Disincentivize Passenger Vehicle Customers, Says Tata Motors - Overdrive

Auto Budget 2016: Additional cesses may disincentivize passenger vehicle customers, says Tata Motors

29 Feb 2016 / 0

Tata Motors welcomes the Union budget announced today. We are particularly encouraged with the government opening up private participation to the public road transportation sector, for a potential to address commuters’ grievances, by enhancing the quality of public road transportation services. Boost in spends related to infrastructure and construction of roads and highways, will help increase spends on commercial vehicles, at the same time improve last mile distribution. Positive changes to custom duty, will help further the country’s Make in India initiative. Amendments to the Motor Vehicles Act, removing permits for plying small passenger vehicles, will encourage small entrepreneurs, and more importantly ensure safe and efficient last mile connectivity, across states.


While the passenger vehicle industry has been facing challenges over last few years, it has barely begun to show some signs of recovery. Additional cesses may disincentivize passenger vehicle customers, impacting the industry.

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