Excise cuts could make cars, two-wheelers cheaperFebruary 29th, 2008 - 3:22 pm ICT by admin
Chennai, Feb 29 (IANS) Cars and two-wheelers are expected to become cheaper with Finance Minister P. Chidambaram Friday giving handsome excise concessions to the Indian automotive industry in his budget for 2008-09. Chidambaram has cut the excise duty on bus chassis, small cars, two- and three-wheelers from 16 percent to 12 percent.
In the case of hybrid cars, excise duty has been brought down to 14 percent from the current 24 percent, a drastic cut of 10 per cent.
The government’s move brings great relief to two-wheeler manufacturers suffering from slow growth.
Companies like TVS Motor, Bajaj Auto, Hero Honda, Kinetic, Yamaha and Piaggio would be the gainers.
With Tata Motors launching its small wonder, the Nano, and planning huge volumes, the cut in excise duty is expected to benefit the company in a large way.
Tata Motors would also benefit from the reduction in excise duty on bus chassis as would Ashok Leyland and Eicher.
According to K. Sridharan, executive director of Ashok Leyland, “The budget is good for the auto industry. The excise duty reduction will be passed on to the customers.”
The other car manufacturers who would benefit the most are Maruti Suzuki Limited, Hyundai Motors, Ford and General Motors.
Tags: ashok leyland, auto industry, bajaj auto, bus chassis, car manufacturers, eicher, excise duty, feb 29, finance minister, hero honda, hybrid cars, hyundai motors, maruti suzuki, p chidambaram, small cars, small wonder, sridharan, tata motors, three wheelers, two wheeler