Thursday, February 20, 2014
By Car Khabri Team
Reduction in excise duty compels car makers to reduce prices of their vehicles
The recent announcement by honorable Minister of Finance, Government of India, reducing the excise duty on cars and motor cycles in the Interim Budget has not only emerged as a boon for car buyers but also raised rays of new hopes to auto industry which during last one year was passing through the worst phase of decade. Going through the decision of reduction in excise duty all major car makers have declared huge discount on their cars with immediate effect, thus offering huge profit to prospective buyers keen to buy new cars.
To begin with country’s leading car manufacturing company Maruti Suzuki India Limited, dominating 40% of car market in passenger cars segment has announced the decline from Rs. 8,197 to Rs. 30, 984 on all cars under its flagship, including the recently launched Maruti Celerio. Following the same strategy second largest company of country Hyundai Motors India Limited has announced huge reduction on prices of its vehicles varying from Rs. 10,000/- to Rs. 1, 35,300.
Similarly Volkswagen India has announced the reduction in prices of its vehicles from Rs. 18,000 to Rs.31,000. Moving ahead Nissan India slashed the prices of its vehicles varying from 4% to 6%. On the other side home grown auto company Mahindra & Mahindra also announced the reduce the prices of its vehicles under its portfolio from Rs. 13,000 to Rs 49,000.