Cars, Bikes and UVs to Get Pricier From July 1?

It is no secret that the Indian auto industry has been going through a rough phase, and it might just become even worse. The excise duty cut announced by the government during the previous budget, is set to expire on June 30, and the current government is yet to take a decision to uphold the benefits. This might lead to cars, bikes and UVs becoming expensive from July 1.

A senior delegation from the SIAM (Society of Indian Automobile Manufacturers), led by Mr. Vikram Kirloskar, President, SIAM, recently met several ministers and proposed the extension of the excise duty cut benefits. So if the government doesn't take any decision before June 30th, utility vehicles will add about 6% to their cost, while cars and bikes will become pricier by 4.5-5%.

In the interim budget presented by the previous government in February, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 per cent from 12 per cent; 20 per cent for mid-sized cars from 24 percent; 24 per cent from 30 per cent for SUVs and 24 per cent for large cars from 27 per cent. This resulted in most autoamkers passing on these benefits to customers by cutting down prices.

Long story short, if the government doesn't make up its mind about the excise duty cuts before June 30, July could very well be one of the worst months for the auto industry. However, many automakers are hoping that the matter will be addressed and resolved before the deadline.