Go grab it! Cars get cheaper by up to Rs 1,35,000
Feb 19 2014 , Mumbai
Maruti, Hyundai, Volkswagen, Nissan pass on excise duty cut
Maruti Suzuki, Volkswagen, Mahindra & Mahindra, Hyundai and Honda announced price cuts across models and variants on Wednesday.
Finance minister P Chidambaram on Monday reduced excise duty on small cars, motorcycles, scooters and commercial vehicles from 12 per cent to 8 per cent, and on SUVs from 30 per cent to 24 per cent. The duty has come down from 27 per cent to 24 per cent in case of large cars and from 24 per cent to 20 per cent in case of mid-size cars.
The duty cut has made sports utility vehicles cheaper by Rs 48,000 to Rs 60,000.
Tata Motors, General Motors, Nissan and Mercedes Benz were the first to announce price cuts across different categories of passenger and commercial vehicles within hours of the budget announcement.
On Wednesday, Maruti Suzuki reduced prices by a minimum of Rs 8,500 in case of standard Alto, going up to Rs 31,000 for some of the top models.
Volkswagen reduced prices of all products. Different variants of Polo have become cheaper by Rs 18,000 to Rs 31,000, those of Vento by Rs 14,500 to Rs 27,000 and Jetta models by Rs 38,000 to Rs 51,000.
“We have decided to pass on the benefit of the entire excise duty cut to our customers. We hope this move will help improve market sentiment in the automotive industry,” said Arvind Saxena, managing director of Volkswagen Passenger Cars.
M&M reduced prices of various passenger vehicles ranging from Rs 13,000 to Rs 49,000. The Rexton will get cheaper by up to Rs 92,000.
Pravin Shah, chief executive of automotive division at Mahindra & Mahindra, said, “We are confident that the price cuts by Mahindra as well as other auto firms will provide the much-needed boost to the auto industry. The prices of our range of commercial vehicles are also being reduced.”
Hyundai Motor India (HMIL), the country’s second largest passenger vehicle maker, said it had passed on the full benefit of the excise reduction. The price reductions came into effect on all models from Eon to Santa Fe from February 18.
Rakesh Srivastava, senior vice-president for sales and marketing at HMIL, said, “The excise duty reduction will reduce prices substantially, making cars more affordable. The quantum of benefit will vary from Rs 10,000 to Rs 1,35,300 across Hyundai models.”
Honda Cars India cut prices of various models by Rs 14,650 to Rs 44,741. Its top-selling model Amaze will now cost Rs 4,99,900 while the new City sedan will come for Rs 7,19,000. The new price of Brio, the only hatchback in its lineup, will be Rs 3,99,900, (all prices, ex-showroom, Delhi Jnaneswar Sen, senior vice-president for marketing and sales at Honda Cars India, said, “The duty reduction will give the necessary boost to consumer demand and fuel growth in the auto industry. We are happy to pass on the benefit to our customers.”
Nissan said it has begun to pass on the full benefit of the excise duty cut to its customers from February 18, but the exact quantum was not known. The price reductions for Micra Active, Sunny, Evalia, Terrano and Teana range from four to six per cent.
Kenichiro Yomura, president, Nissan India operations, said, “The excise duty reduction will help revive the auto industry. We are confident the price cuts will make our products more accessible and drive growth across the range.”
Mercedes Benz feels the incentives on cars and SUVs will boost the auto industry significantly. “Mercedes-Benz shall pass on the best possible price benefit to customers despite volatile foreign exchange movements. The price of C-Class in Delhi would come down from Rs 39.90 lakh to Rs 39.35 lakh, and that of E-Class from Rs 47.66 lakh to Rs 46.90 lakh and GL-Class from Rs 74 lakh to Rs 72 lakh,” said Eberhard Kern, managing director and CEO of Mercedes Benz India.