Small cars, SUVs and two-wheelers to get cheaper

Highlights
Excise duty for small cars has been reduced to 8 percent from 12 per cent till June 20, 2014. For SUVs, the excise duty has come down to 24 % from 30%. Auto manufacturers like Mahindra & Mahindra, Tata Motors and others having a strong hold in the Utility and SUV segment, are seeing it as a relief as the sales of SUVs dropped dramatically in 2013 due to high prices. This will also benefit manufacturers like Maruti Suzuki India and Hyundai which are top two contributors in small car segment.
Excise duty on two-wheelers too has come down to 8 percent, while the medium cars will have to pay 20 percent, which was 24 per cent earlier. The cut in excise duty is a welcome step, especially at a time when the Indian automotive industry has been going through its worst phase.
Mr. Vikram Kirloskar, President, SIAM said, "SIAM would like to thank the Finance Minister for recognizing the need for a more moderate tax structure for the automotive industry and for accepting SIAM's tax related recommendations. We believe that this reduction in Excise Duty would reduce the acquisition price thereby making vehicles more affordable which would improve the consumer sentiment and hopefully revive the demand for vehicles"
He added, "The Automotive industry is the engine of growth for the manufacturing sector as a whole as it supports key industries like auto-components, capital goods, raw materials, electronics, chemicals, plastics, software etc. Revived growth in the automotive industry would have significant positive impact on these key downstream and upstream manufacturing sectors that largely depend on the performance of the auto sector. This could hopefully herald a revival of the manufacturing sector in the days to come."
Dr. Pawan Goenka, Executive Director & President (AFS), Mahindra & Mahindra said, "We are delighted at the steps taken to boost manufacturing sector and especially the auto industry. From where the industry is today, the budget announcements are quite positive and should give relief to the auto industry by boosting demand. If these initiatives are maintained in the final FY15 budget, it should be a much needed positive stimulus for overall manufacturing sector in India".
Praising the announcement made in the interim budget, Mr. Pravin Shah, Chief Executive, Automotive Division, M&M: "We are delighted at the Interim Budget announcements which have been taken to boost the manufacturing sector and especially the automotive industry. These announcements are positive and should help the auto industry witness some turnaround. Mahindra welcomes the reduction in excise duty in automobiles across the product range including the SUVs".
Mr. Sunil Rekhi, CFO, Nissan Motor India Pvt Ltd on the Interim Budget 2014 said, "It is a welcome move for the Economy, particularly for Auto sector which is looking for strong support from the Government for a growth stimulus as it is struggling with the negative growth for most part of this year. As Auto Sector is the backbone for economic growth in terms of huge employment provider, through its entire value chain starting from Tier N Vendors to end retail sector and related industries including Financial/Logistics/Services/Infrastructure."
"We believe that this reduction in Excise Duty will reduce the acquisition price. Thus making the vehicles more affordable which should improve the consumer sentiment and hopefully revive negative growth for vehicles.", he added.
Great Deals on Used Cars
View All Used Cars









Upcoming Cars










Upcoming Bikes










You might be interested in
Latest Reviews
Related Articles

21 hours ago
Conceived and brought to life over a period of two years, the River Indie has a refreshingly sharp focus on utility

1 day ago
Here's a quick review of the 2023 Tata Nexon EV, in pictures.

2 days ago
Will the Royal Enfield Hunter 350 be able to attract new riders into the brand? We ride the most affordable and accessible Royal Enfield motorcycle on the streets of Bangkok to get a sense of what it offers.

2 days ago
The Royal Enfield Streetwind Eco offers good airflow for use in warm weather, a comfortable fit and decent protection. Made from recycled plastic, it makes a ‘green’ statement as well. But should you consider buying it?

2 days ago
We had the Toyota Hilux pickup truck with us for a few days and we put it to test, like how it would be used on a daily basis and we had some interesting observations. Read on to find out how the Hilux fares as a daily driver.

2 days ago
The third generation 390 Duke has received the most significant update since its introduction in 2013.

4 days ago
The KTM 390 Duke has received a significant update in the form of a new chassis, powertrain, features and more. How much better is it now? And is it worth the asking price?

9 days ago
Volvo C40 Recharge is possibly the company's best EV so far. If you haven't read our full review to know why we think that, here’s a quick in pictures review of the electric coupe SUV.

1 year ago
In a bid to promote the usage of blended fuel, Finance Minister Nirmala Sitharaman has intoduced an additional excise duty of Rs. 2 on Unblended Fuel from October 2022.

7 years ago
The government has hiked the excise duty on fossil fuels for the third time this month. The most recent hike has resulted in an increase of Rs 1 per litre of petrol and Rs 1.50 per litre of diesel.

8 years ago
The government raised excise duty on petrol and diesel by Rs 2 per litre each but retail pump rates will not be increased.
