Auto makers reduce prices after excise duty cut
Automobile companies Wednesday said they will pass on to customers the benefit that would follow the excise duty cut announced in the interim budget for 2014-15.
Chennai-based Hyundai Motor India said it has reduced prices in the range of Rs.10,000-Rs.135,300 on the entire range of products.
"The reduction in excise duty would substantially reduce the prices, making cars more affordable," said Rakesh Srivastava, senior vice president, sales and marketing, HMIL.
Mahindra & Mahindra also announced reduction in prices of its passenger vehicle portfolio ranging between Rs.13,000 and Rs.49,000.
The company said it will also reduce the price of its premium sports utility vehicle (SUV), Rexton, by up to Rs.92,000.
"We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry. The prices of our range of commercial vehicles are also being reduced," said Pravin Shah, chief executive, automotive division, Mahindra & Mahindra.
Other automobile manufactures such as Nissan said it will also pass on the full benefit of recent cuts to vehicle duty which range from four to six percent.
"The reduction in excise duty is a welcome move towards revival of the Indian automobile industry. We are confident this will make our products more accessible and drive growth across the range," said Kenichiro Yomura, president, Nissan India Operations.
Two-wheeler manufacturer Hero MotoCorp has also passed on the excise duty benefit to customers ranging from two percent-five percent.
"We have decided to pass on the entire benefit of the excise duty cut to our customers. We have judiciously spread out the cut across our product portfolio ranging from two percent going up to five percent with the maximum reduction being Rs.4,500," the company said in statement.
Luxury automobile manufactures like Mercedes-Benz and Audi have also cut prices. Earlier, auto makers like General Motors, Tata Motors and Volkswagen Passenger Cars said they would pass on the excise rate cut benefit to customers.
In the interim budget 2014-15 speech Finance Minister Chidambaram reduced the central excise on small cars, scooters/two-wheelers from 12 to 8 percent.
He also reduced the central excise from 30 percent to 24 percent on SUVs, and medium segment sedans from 27-24 percent to 24-20 percent, respectively.
(Posted on 19-02-2014)