Budget: Big, Long Cars Get Cheaper in India

Tuesday 07 July 2009, 00:00 AM by Rishi

The Government has announced its new tax sops. The Budget yesterday proposed to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit. It also cut the duty of petrol-driven trucks to 8 percent from current 20 percent.

Auto manufacturers have starting announcing their price cuts on big cars and pass on the duty benefit to their customers. Stating with Hindustan Motors, the company has announced a price cut of Rs. 6000 on its partner’s Mitsubishi models in India. Mitsubishi has a joint venture with Hindustan Motors in India. The new prices of Pajero, Outlander and Montero cars will be effective from July 07, 2009. "HML is passing on the entire benefit to the customers who can expect a Rs 6,000 cut in Pajero, Outlander and Montero prices effective July 7," said the company official statement. The new cost of Pajero will be Rs. 20.64 lakh, Outlander will be Rs. 20.69 lakh, and Montero will be priced at Rs. 41.94 lakh. All prices are ex-showroom, Delhi.

Tata Motors also stated that it will soon announce new prices of its models in India. General Motors, BMW, and Toyota also stated that they will pass on the excise duty benefit to their customers. "We will pass on the benefits of this excise duty cut to our customers immediately," General Motors India Vice President P Balendran told media.

"We have always been passing on all benefits to the customers, which we get from the government. Though this cut is very minimum, still we will pass on this," TKM Deputy Managing Director (Marketing) Sandeep Singh said.

However, Honda Siel Cars India Limited refused to cut prices on its models. "We will not cut prices. There is lot of pressure on bottom line due to depreciation of Rupee in the international market," a HSCI spokesperson said.

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