Union Budget 2011 Highlights

- No change in excise duties which comes as a relief to the auto sector. This means excise duty on small cars remains at 10%, large cars and SUVs continue to attract 22% excise duty.

- In a decidedly eco-friendly step, the minister proposed the setting up of a national mission on hybrid vehicles and electric vehicle (EV) as well as special incentives for hybrids if made in India.

- Full exemption from basic customs duty and a concessional rate of Central Excise Duty extended to batteries imported by EV manufacturers.

- Excise duty on LEDs reduced to 5% which should encourage automakers to adopt this technology.

- Concessional Excise Duty of 10% to vehicles based on fuel cell technology.