Car Makers to Cut Down Prices Once Again

Monday 02 March 2009, 00:00 AM by Satish Kalepu

The central government is in discussion with the automobile manufacturers in India to pass on the entire benefit of the four percent CENVAT Cut announced in December last year. Leading automobile manufacturers had lately increased their car prices citing rise in input costs as the reason. They also stated that the manufacturing costs have escalated which has made the automobile manufacturers to increase the prices of their models in the country.

Hyundai, Maruti Suzuki, Toyota Kirloskar had increased their car prices in India. they argued that the rupee has devaluated which has led to the disparity in production cost and retailing of the cars. It has made the imports expensive and the manufacturing costs have increased considerably.

"The Department of Heavy Industries has been asked to see that automobile majors pass on the benefit of the duty cut to consumers," an official source privy to the recent meeting of the Committee of Secretaries said.

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