Just a day ahead of the announcement of results of the Lok Sabha elections, car market leader Maruti Suzuki India on Friday said it expects the new government to continue to support the slump-hit auto industry.
Last December the government cut excise duty and froze petrol prices, and also cut interest rates. Those steps helped the auto industry. Asked about expectations from the new government, he said the company was with the Society of Indian Automobile Manufacturers' overall view that the auto industry needs continued government support.
"I hope the new government continues with the support and there are no excise duty hike. I'll be happy if there is a further excise duty cut," Nakanishi said.
The Indian auto industry has been passing through one of the roughest rides in its history with auto sales growing by just about 0.71 per cent last fiscal at 97,23,391 units, thanks mainly to a late surge in the last quarter, after the government's stimulus packages. In the financial year 2008-09, the domestic passenger car sales rose by 1.31 per cent to 12,19,473 units, whereas the sales of commercial vehicles decreased by 21.69 per cent to 3,84,122 units.