Honda, Hero cut 2-wheeler prices to pass on excise duty cut benefits
Feb 18 2014
The auto industry has been facing its worst-ever crisis in over a decade, while the two-wheeler category has been growing at a slow pace of about 3.75 per cent. Two-wheeler makers clocked total sales of 1,619,689 units this January.
A spokesperson of Hero MotoCorp, India's biggest two-wheeler maker, said the firm had decided to pass on the entire benefit of excise duty cut to the customers. "We have judiciously spread out the price cut across our product portfolio ranging from 2 per cent going up to 5 per cent with the maximum reduction being Rs 4,500."
HMSI reduced prices by Rs 1,600 on Dream Neo going up to Rs 7,600 on CBR 250R. “Honda welcomes the excise duty relief given to auto industry in the interim budget. In line with its customer-friendly approach, Honda has decided to pass on the full benefit of 4 per cent excise duty reduction on two-wheelers to its valued customers across India with immediate effect. Now, all Honda two-wheelers are even more affordable,” Said YS Guleria, vice-president for marketing and sales, HMSI.
This provides two-wheeler lovers a good opportunity to buy their favourite bikes.
Yamaha India is also planning to reduce prices of various models. “We are working on the price reduction as per the excise duty relief. We will soon announce the reduction and make Yamaha two-wheelers more affordable for our customer across India,” a Yamaha official said.
Suzuki has not confirmed any price cut, but with other companies reducing prices, it may soon follow suit. With the price reductions, the two-wheeler markets is likely to see a pickup in sales.