Vote on Account 2014: Auto stocks ride up as P Chidambaram announces excise duty cuts

MUMBAI: Shares of cars and bike manufacturers moved higher after Finance Minister P Chidambaram announced in his interim Budget that the excise duty on small cars and bikes will be cut to 8 per cent from existing 12 per cent.

The excise duty on SUVs will be cut to 24 per cent from 30 per cent.

Mid segment cars will be cut to cent 20 per cent from 24 per cent.

At 12:00 p.m.; the BSE Auto Index was up 0.20 per cent against 0.40 per cent gains on the Sensex.

Escorts was up 3 per cent, Maruti moved 0.11 per cent higher, Hero MotoCorp gained 1.24 per cent, TVS Motor company was 1.25 per cent higher and M&M edged up 0.03 per cent.