Volvo Group seeks for moderate taxation regime for automobile sector

Volvo Group India stressed on the requirement for a careful and selective strategy on phased manufacturing programmes in some places to enhance technology adoption, pitching for a more moderate taxation regime for the automobile sector in the Union Budget. In its pre-budget expectation note, Volvo Group president and managing director, Kamal Bali had told the media that the industry is looking forward to a resolute policy to evade inverted duty structure for components. He said that Volvo Group India was expecting and wishing to witness the budget continuing to press forward on infrastructure-focused capital expenditure, clean, green and connected logistics, to guarantee a strong, competitive and sustainable industrial ecosystem. After a stellar peak performance in 2018, the automotive sector, especially the CV industry struck a bit of a roller coaster with the new axle load mandate, graduation to BS-VI regulations, along with Covid-19 jolt and lockdowns, the surging commodity costs, chip shortage influencing the supply chain in the past few quarters. While the last few quarters have been a term of good recovery and rebound, the industry is yet not close to the peak of 2018. Terming the production-linked incentive (PLI) scheme, together with the vehicle scrappage policy as path-breaking measures and many more, initiatives hit at the root of the restrictions that they have been confronted with and thus bode well for the economic development. Stating that the automotive sector, which adds to nearly half of India's industrial gross domestic product (GDP), is at the cusp of a significant shift on the back of emerging technologies, climate agenda and future mobility trends. But, the sector needs some help on a more moderate taxation regime. Image Source Also read: Volvo CE records 13% y-o-y increase in Q2 sales