It’s good news for Indian Automobile industry and buyers in 2014, because the Indian cars and bikes now would be cheaper according to new interim budget 2014 on Excise Duty.
The Union Finance Minister P. Chidambaram announces to reduce central excise duty on Indian automobile industry in the interim budget 2014 because of sluggish growth. The central excise duty reduced prices on small cars, scooters/two-wheelers from 12 to 8 percent, SUVs from 30 to 24 percent, large cars from 27 to 24 percent and mid-sized cars from 24 to 20 percent respectively.
The automotive industry has been facing low sale problem due to prices hike last year, the announcement on reduction in excise duty is timely and will help boost the sales and achieve a positive targets in the automotive sector.
So, the excise duty would be cut two-wheeler price up to Rs. 1200-1500 per unit. And small car price likely to cut by around Rs. 15,000-10,000 per unit, Mid-sized cars up to Rs. 25,000 to 30,000 then large cars Rs. 60,000 to 80,000 and SUVs price would be cut by around Rs. 40,000 to 2 lakh per unit.
The following makes announced immediately to slash prices for Indian Car buyers:
Maruti Suzuki, Tata Motors, General Motors and Mahindra & Mahindra said they would pass on the duty relief to consumers. The excise duty cut will be applicable up till June-end this year.
Maruti recently unveiled the compact car Celerio, carrying a price tag of Rs 4.29-4.59 lakh for the automatic version and Rs 3.9-4.96 lakh for the manual model. Experts expect a price cut of Rs 8,000 to Rs 15,000 on the Celerio.
Tata Motors new compact sedan Zest and the hatchback Bolt cheaper by Rs 15,000 – 30,000 and its SUV Safari will cheaper at least Rs 40,000.
Mahindra and Mahindra said, its entire line-up including the XUV 500, Scorpio, Bolero, Xylo and the Verito series would be cheaper at least Rs 40,000.
The German car makers Audi and Mercedes-Benz have reduced prices up to Rs 3.82 lakh. Mercedes Benz India said the ex-showroom Delhi price of its C-Class will be lower by Rs 55,000 at Rs 39.35 lakh, while the E-Class will now cost Rs 47.66 lakh compared with Rs 46.90 lakh earlier. The ex- showroom price of the GL-Class in Delhi will come down by Rs 2 lakh to Rs 72 lakh.
Japanese car maker Nissan said the excise duty reduction would translate into price cuts ranging from 4-6 per cent.
Superbike maker DSK Hyosung said it was looking to reduce the prices but didn’t give the details.