High levy is going to hurt vehicle sales: Vikram S Kirloskar, Toyota Kirloskar Motor

What do you think about the Budget?

I am disappointed with the size of levy because it is going to hurt vehicle sales. We had just started improving sales in the last 12 months, the industry is still running at 20-30 or 40 per cent below capacity. There is a lot of money to be spent in the next four years to meet regulations which are coming in 2020 or emission and safety, so this is a big stress. I do not have so much issue if this money is really green money and it is used for incentivising removal of BS1 and BS2 vehicles off the roads. That will help in the emissions and in the environment as well as for promoting hybrid and electric vehicles and I am okay with it. But if not, then I am very uncomfortable.

Apart from this, the other possible disappointment for the industry has been that the reduction in corporate tax rate has also not happened?

That is okay. I am not so concerned about that. Taxation is okay. I think the emphasis on rural irrigation and all that is very important. I have always felt that if farmers do well, we do well and farmers need people to take care of them. The poor people need people to take care of them. We can take care of ourselves. So in that way I am very happy.

In terms of consumption, do you believe this budget does enough to boost consumption going forward?

You know consumption comes out of confidence in the economy. If I feel I am confident of getting an income in the next five years, then I will spend. If I am not sure whether I will get a good income in the next five years, I would not spend.

So what do you say?

I think confidence is going to take some more time. The parliament has to run smooth. There are many other issues to build confidence in the government but generally I think there is confidence in the economy.

Disclaimer: This info has been published and collected from various public & secondary resources.