Maruti, Hyundai pass on excise cut
In a major boost to the auto sector, PC slashed the excise duty on small cars from 24% to 16%.
By INDIATIMES NEWS NETWORK |
NEW DELHI: In a major boost to the automobile industry, the Finance Minister P. Chidambaram on Tuesday slashed the excise duty on small cars from 24% to 16%.
In a quick reaction to FM's announcement, car major Hyundai announced a Rs 23,000 cut on Santro prices. This apart, Maruti announced the small cars to go south by Rs 13,000 to Rs 22,000.
However, FM specifies that the dimensions of the car should not exceed 4000 mm. It will be applicable for 1500 cc diesel cars and 1200 cc for petrol cars. This is a major bonanza for first time buyers or the ones who are planning to switch over from a basic car like Maruti 800 to Maruti Suzuki Swift.
In a quick reaction to FM's announcement, car major Hyundai announced a Rs 23,000 cut on Santro prices. This apart, Maruti announced the small cars to go south by Rs 13,000 to Rs 22,000.
However, FM specifies that the dimensions of the car should not exceed 4000 mm. It will be applicable for 1500 cc diesel cars and 1200 cc for petrol cars. This is a major bonanza for first time buyers or the ones who are planning to switch over from a basic car like Maruti 800 to Maruti Suzuki Swift.
Indian car market leader Maruti Udyog today announced a price cut ranging between Rs 13,000-22,000 across five models, including 'M800' and 'Alto', following the cut in excise duty on small cars.
"Maruti prices will reduce from tomorrow," company Managing Director Jagdish Khattar said, immediately after the Finance Minister announced that excise duty on small cars will come down by eight per cent to 16 per cent.
The price cut on the popular 'M800' will be around Rs 13,000, hatchback 'Alto' by Rs 15,000, and on 'WagonR' between Rs 15,000 and Rs 22,000, Khattar said.
"We will incur a loss of Rs 30-40 crore because of this though it would be good in the long term," Khattar said.
The other two models where prices will be cut are the 'Zen' and 'Omni' van.
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