Scania India Pre-Budget Statement - FY 2016

FY 16 – Pre Budget statement

Quote attributed to:

Stefan Palskog – President Scania India and

Mikael Benje – Managing Director Scania India

Scania is eagerly awaiting forward movement on the GST, which we believe will have a multiplier effect on India’s overall economy. As you know, estimates are pegged at nearly a 2 % fillip to the GDP.  More specifically, GST will also have a positive impact on the logistics sector, which is crucial to India’s long-term growth, particularly. Interstate mobility, both of people and goods, will be smoother and more efficient with a rationalized and simple tax structure.  For us, as a bus and truck manufacturer, focused on increasing localization in domestic production as well as serving as export hub to Asia, Scania believes that GST will significantly reduce costs across our supply, value chain. We believe a large share of the benefits can be realized from an uncomplicated tax structure as manufacturers and service providers in this sector face a complex tax structure, which hinders inter-state business detrimental to the value chain in most businesses. In a nutshell, a successful roll out of GST is a pre-requisite for achieving Government of India’s Make in India targets.

Globally, in countries like Brazil and Sweden, sustainable transport has been made a reality by an enabling policy that provides incentives to stakeholders throughout value chain of sustainable transport. Scania as a pioneer in India in the sustainable transport business, we are also hoping to see urgent policy action on ethanol and Biogas as a fuel for the large transport sector. This ranges from sustainable fuels to green transport manufacturers like Scania. Infrastructure for fuelling of renewable fuels must be seen as important public good that can be jointly created in public private partnerships with various stakeholders, in particular with, support with state and city governments as well as their urban local bodies. Sustainable urban mobility is the need of the hour and we hope GOI will put in place enabling policies that accelerate the growth and development of sustainable urban transport, which is fuelled by renewables.  Sustainable Transport solutions from Biofuels will be the key cornerstone of making a city smart.