Ashok Leyland, the leading commercial vehicle maker in the Indian market, has decreased the price of its vehicles by 1% following the government’s decision of excise duty on truck chassis. As per a press release issued by the company in this regards, the price cut would come into force with immediate effect.
In the first week of May’12, the company had increased the prices of its vehicles by 5 percent following government’s decision of increasing the excise duty in the union budget 2012.
The government of had recently announced to reduce the excise duty on chassis by 1 percent in a bid to give a minor relief to the commercial vehicle makers whose vehicle bodies are installed outside their manufacturing facilities. The excise duty on chassis for these vehicle makers is now 14 percent from earlier figure of 15 percent.
The government of India has imposed an excise duty of 3 percent for the vehicle makers, who only built chassis, so that it can encourage the vehicle makers to either roll-out fully built vehicles or outsource it to small players.
