Yamaha’s Expectations from the Upcoming Financial Budget

Yamaha has got some expectations from the upcoming budget 2011-12. There are various things that could influence the prices prevailing in the automobile market like the cost of raw materials, various taxes levied by the government and other important issues.

The Japanese Manufacturer Yamaha is in a phase of expansion currently in India. It has launched various models particularly in the high end segment. As far as the production is concerned, Yamaha produces its motorcycles at Surajpur in U.P and Faridabad in Haryana for both exports and local markets.

As a result, Yamaha’s Head Roy Kurian has made some suggestions to the finance minister Pranab Mukherjee as regards forthcoming union budget 2011-12 for the Automobile sector.

Kurian was of the opinion that last year the markets were booming. To continue and maintain stability despite the high petrol prices, Kurian suggested that government should not touch excise duty at all.  He also said that the focus on credit availability on two wheeler loans at low interest rate shall have to be increased in order to boost the two wheeler sales. At last he said that government should not increase customs duty on steel or aluminum as it would result in increased prices of automobiles especially two wheelers.

As far as the general biker perception is concerned, these suggestions made by Kurian are worth a debate because a rise in any duty or tax will result in increased burden on the new enthusiastic bikers wanting to purchase bikes. Let’s hope that our finance minister justifies law and also think about people while rolling out the budget.