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Auto margins could come under near-term pressure on higher duties

Commercial vehicle companies to gain the most on scrappage, bus orders and infra boost

Topics
Auto sector | Budget 2021 | Auto parts

Ram Prasad Sahu  |  Mumbai 



automobile, COMMERCIAL vehicles, cvs, sales,auto sales, car, equipment, manufacturing, component, production, jobs, workers
Given the higher input costs, margins of automakers (depending on their localisation levels) could come under further pressure.

While most of the proposals for the in the Budget were positive, the increase in duties on certain to 15 per cent from 7.5 per cent to 10 per cent could lead to higher costs for . Though these measures will encourage localisation in the long term, Saurabh Agarwal, Tax Partner, Automotive sector, EY India believes that there could be some pressures in the near term as auto part makers pass on the higher import duties. Though overall annual auto imports are pegged at Rs 2 lakh crore only half of this is impacted as the rest are covered under the FTA agreements which offer differential rates.

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First Published: Tue, February 02 2021. 19:53 IST

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