Auto stocks ride high as FM announces excise duty cuts

Auto stocks today rose by 4 per cent after Finance Minister P Chidambaram announced in the interim Budget that excise duty on small cars and bikes will be cut to 8 per cent from existing 12 per cent.

Shares of Hero MotoCorp surged 4 per cent, while TVS Motor Company gained 3.86 per cent on the BSE.

Escorts shares were up 3.86 per cent, while Mahindra & Mahindra rose by 2 per cent, Eicher Motors (1.9 per cent) and Maruti Suzuki (1.79 per cent).

The BSE auto index was trading 0.40 per cent higher at 12,015.66 during the afternoon trade.

Excise duty on small cars, motorcycles and SUVs was reduced. Excise duty on SUVs has been cut from 30 per cent to 24 per cent, in large and mid-segment cars, from 27-24 per cent to 24-20 per cent.

Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8 per cent and appropriate cut to be done on chassis, trailers.

In the stock market, the benchmark Sensex was trading at 20,411.17, up 44.35 points at 1232 hrs.


  • Consumer spending during Oct-Dec will reveal the real state of economy

    There has been a lot of talk on the state of the economy over the past several months.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Arun Kumar Jain

Good governance and vicarious liability

Last fortnight was an extraordinary one for sta­keholders in good ...

Kuruvilla Pandikattu

Humans are wired to be lazy

Those of us who spend hours doing rigorous exercising with ...

Dharmendra Khandal

How positive intervention can go a long way

Ten years ago, Sariska tiger reserve declared that there were ...


William D. Green

Chairman & CEO, Accenture