U.S-based automaker General Motors has made its opinion public by stating that it hopes the new government continues with the excise duty cut that was announced in the Interim Budget 2014-15 by the out-going UPA II government. Narendra Modi-led BJP government is slated to take charge this week, following a resounding victory in the country on 16th May in general elections. The new government is expected to announce the Budget 2014-15 within a couple of months. The Interim Budget was announced in February 2014 by the UPA II government.
Mr P Balendran, vice president of General Motors India said, “The automobile industry in the country is in bad shape registering a de-growth in the last four months of 2014. The new government in its budget should continue with the excise duty cut as announced in the last budget.” Balendran said that the buyer sentiment was poor due to high interest rates and inflationary pressures. "It will take at least six to nine months for the automobile industry to be back on tracks," he added.
The industry's growth during 2014 is expected to be in single digit, 4-5 per cent, he said. "We hope to grow at par with the industry." Earlier, General Motors India had announced that the company would start exports of its products from later part of this year. At the moment, the company exports its products to Nepal and Bangladesh.