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Budget Impact on imported automotive parts: Mercedes, Skoda say custom duty hike on certain parts to lead to increase in vehicle prices

Synopsis
In the Budget 2021-22, Finance Minister Nirmala Sitharaman proposed increase in customs duty of various parts, including ignition wiring sets, safety glass and parts of signalling equipment to 15 per cent with effect from February 2.
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New Delhi The proposal to increase customs duty on certain imported automotive parts in the Union Budget 2020-21 will lead to increase in car prices, according to Merecedes-Benz India and Skoda Auto Volkswagen, even as component makers said the step will encourage local manufacturing of such items. The government on Monday proposed an increase in customs duty on certain imported components used in automobiles.

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2020: A recap of all that happened in the automotive world

Auto Expo – No lull before the storm
Skoda's pavilion at the 2020 Auto Expo.
While news of the COVID-19 outbreak spreading to other countries had already made headlines by then, the 2020 Auto Expo went ahead as planned. Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Kia, Renault and Mercedes-Benz were out in full force as usual, and Volkswagen and Skoda made their return to the biennial motor show. That said, notable names such as Honda, Toyota, BMW, Audi and Fiat Chrysler Automobiles chose to give the 2020 edition a skip. However, this year’s show also featured MG and Great Wall Motor, both of which had sprawling stalls featuring a plethora of models.

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