ALL passes duty cut benefits to consumer
In line with the excise duty reduction from 10% to 8% for trucks and auto components, Ashok Leyland will pass on the full benefit to its customers.
By ET Bureau |
CHENNAI: In line with the excise duty reduction from 10% to 8% for trucks and auto components, Ashok Leyland will pass on the full benefit to its customers. This is happening at a time when the company���s inventory of vehicles ��� 9000, as opposed to its usual 4000 - had attracted a higher excise duty. The inventory had built up as the commercial vehicle sector saw a 30% dip in demand in the months of November and December.
The impact of the duty reduction will work out to a price reduction ( on an average) of over Rs 16, 000 per vehicle, including the company���s own discount schemes, ALL said in a statement on Wednesday.
Earlier, it slashed vehicle price by Rs 20,000 to Rs 30,000 by passing on the previous excise duty cut and offering discounts. It plans to hit the normal inventory level of 4000 vehicles this month end by drastically cutting working capital.
The impact of the duty reduction will work out to a price reduction ( on an average) of over Rs 16, 000 per vehicle, including the company���s own discount schemes, ALL said in a statement on Wednesday.
Earlier, it slashed vehicle price by Rs 20,000 to Rs 30,000 by passing on the previous excise duty cut and offering discounts. It plans to hit the normal inventory level of 4000 vehicles this month end by drastically cutting working capital.
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