a few days after Finance Minister P Chidambaram announced an excise duty
reduction in the Interim Budget 2014, vehicles makers across the country have
announced price cuts of their model range. In the Interim Budget, the excise duty on small cars,
motorcycles, scooter and commercial vehicles has been reduced by 4pc from 12pc
to 8pc. The excise on large cars has been reduced by 3 pc from 27pc to 24pc and
for mid-segment cars by 4pc from 24pc to 20pc. The excise duty on SUVs has been
reduced by 6pc from 30pc to 24pc. So, now SUVs and large cars attract a similar
excise duty of 24pc.
two wheeler maker Hero MotoCorp has reduced prices across its product
portfolio in the range of 2 per cent to 5 per cent with the maximum cut being
Rs 4,500 on its Karizma bike.
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 2% going up to 5% with the maximum reduction being Rs.4,500,"
the company said in statement.
two wheeler maker Honda Motorcycle and Scooter Ltd (HMSI) has also made its two-wheelers more
affordable by cutting its Dream Neo bike by Rs 1,600, and the CBR 250R Rs
bigwig Maruti Suzuki cut prices in the range of Rs 8197 to Rs 30,984. The newly
launched Celerio has become cheaper by 13,615. The car was launched recently at
the 12th Auto Expo in Greater Noida. Best seller Alto is cheaper by
Rs 11784 while the SX4 sedan is cheaper by Rs 30984. The M800 is cheaper by Rs
Cars India announced a reduction in the price of its models in the range of Rs
14,650 to Rs 44,741. The new prices have been effective from February 19, 2014.
Commenting on duty reduction, Jnaneswar Sen, Sr. Vice President Marketing &
Sales, Honda Cars India Ltd said, “We welcome this move by the government. The
reduction in duty will give the necessary boost to consumer demand and fuel
growth in the auto industry. We are happy to pass on the benefit of the duty
reduction to our customers.”
Thus, the Honda Brio new price range is Rs
399,900 – Rs 599,900, while that of the Honda Amaze- Petrol is Rs 499,900 – Rs 755,000, diesel
is Rs 597,500 – Rs 749,500, the new Honda City petrol is Rs 719,000 – Rs 1,080,000,
diesel is Rs 837,000 – Rs 1,089,000 and the Honda CR-V is Rs 2,025,000 – Rs
largest SUV manufacturer Mahindra & Mahindra has reduced prices from Rs 13,000 to Rs 49,000 for its passenger
vehicles. The reduction of prices are with immediate effect. The company has
also reduced prices of its premium SUV, the Rexton by up to Rs 92,000.
Commenting on the price reduction, Pravin Shah, Chief Executive, Automotive
Division, Mahindra & Mahindra Ltd. said, “We are delighted at the Interim
Budget announcements which have been taken to boost the automotive industry. 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.”
Motor India Ltd. (HMIL), the country’s largest passenger car exporter and
second largest car manufacturer has announced that it will pass in the full
reduction of excise tax benefit to customers in India. The price deduction
benefit will be applicable to all the models from Eon to Santa Fe.
on the passing of the benefit of reduction of excise duty to the customers,
Rakesh Srivastava, Sr. Vice President, Sales and Marketing, HMIL said,
"The reduction in Excise Duty would substantially reduce the prices,
making cars more affordable. The quantum
of benefit will vary from Rs. 10,000/- to Rs. 1,35,300/- across all the
models. Hyundai Motor India Ltd will extend the benefit of these excise duty
cuts to customers with immediate effect & will also support its dealerships
car maker Volkswagen has reduced prices of all its cars in the Indian market.
Prices for the Volkswagen Polo have been reduced by Rs 18,000-Rs 31,000. For
the Vento, prices have been reduced by Rs 14,500-Rs 27,000. Jetta prices have
been reduced by Rs 38,000-Rs 51,000.
welcome the Government’s decision to reduce excise duty on cars and we at
Volkswagen have decided to pass on the entire benefit to our customers. We hope
this move will help improve the market sentiment in the automotive industry,” said
Arvind Saxena, Managing Director, Volkswagen Passenger Cars.
has also passed on 100pc excise tax benefit to its customers in India. The
price reduction by Nissan is in the range of 4 – 6pc and applies to Micra Active, Micra, Sunny, Evalia, Terrano
and Teana. The new prices are effective from February 18, 2014.
Announcing the new prices, Kenichiro Yomura,
President, Nissan India Operations said, “The reduction in excise duty is a
welcome move towards revival of the Indian automobile industry. We at Nissan
are happy to pass 100pc of the tax benefits to our customers. We are confident
this will make our products more accessible and drive growth across the range.”
automobile manufactures like Mercedes-Benz and Audi have also cut prices.
Earlier, auto makers like General Motors, Toyota Kirloskar and Tata Motors said
they would pass on the excise rate cut benefit to customers.