Maruti Suzuki is quite satisfied with the Union budget 2023

According to Maruti Suzuki India Senior Executive Officer, Marketing & Sales, Shashank Srivastava, the Union Budget 2023–24 features various initiatives that would help create demand, supporting the auto industry's prediction that passenger vehicle sales will reach 40.5–41.5 million in the upcoming fiscal.

He said that the "growth-oriented" Budget of finance minister Nirmala Sitharaman had checked "most of the boxes" in terms of the car industry, whose growth is "very heavily associated" with the entire economy.

"For the upcoming year, we have been projecting a jump in passenger vehicle sales of 4.5% to 7.0% or roughly 4.05 million to 4.15 million (2023-34). The industry should reach its peak this year at roughly 3.85 million (units), "said Srivastava to PTI.

He continued, "When the prediction was made, it was assumed that inflation, crude oil prices, and commodity prices would remain consistent, along with no significant changes in terms of tax rates and other factors that affect auto demand."

"The expansion of the auto sector is closely tied to the expansion of the economy as a whole. In that regard, any budget that promotes growth should be advantageous for the auto industry, and yesterday's budget did just that "added Srivastava.

He continued, "From the perspective of the auto sector, it (the Budget) hits most of the boxes."He highlighted the finance minister's suggestions, including one to raise infrastructure development capex by 33% to Rs 10 lakh crore.

Automobile demand will be boosted by an extension of the Center's 50-year interest-free loans to the states and a change in the tax brackets for taxpayers.

"The problem with capital expenditures is that they generate demand over the long term in addition to short-term demand.

It generates the capacity needed for expansion on the supply side. In that sense, it's excellent since it also generates jobs "added Srivastava.

The second element of the budget that will benefit the auto industry, according to him, is the increased disposable income that customers will have thanks to the new tax structure.

"Economically speaking, having more discretionary income increases one's inclination to spend, which is a good thing.

Additionally, the government has announced the scrapping of more than 9,00,000 government vehicles, which should generate a healthy replacement demand "Added Srivastava.