Car Prices May Go Down

author image Rishi
Monday 08 December 2008, 00:00 AM

The government of India has reduced CENVAT by four percent India which may spell into reduced car prices in the country. CENVAT is Central Value Added Rate levied by the government on car makers in India. Slashed prices on all car models may enable the car makers to clock double digit growth in car sales in the country.

Major Indian automakers have already announced that they will pass on the tax benefits to their customers and reduce prices on all their models. Bigger models may witness larger cuts while small car models will also witness slashed prices up to 4 percent.

Maruti Alto price may go down by Rs. 8000 which is the largest selling model in the country. Further reduction in prices will be announced later on Monday by all the car companies. The move by the government will certainly help boost demand,” said Pawan Goenka, President (Automotive Sector), Mahindra and Mahindra. The company has already announced that it will reduce prices of popular models like Scorpio and Bolero. Tata Motors also announced that it will reduce the car prices and pass on the tax advantage to its customers but it did not give details of the price cuts on its various models.

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