Post excise duty cut announced by finance minister P Chidambaram, the manufacturer and the buyer segment seemed to be the happier lot. Recent update on the share prices for Hero MotoCorp state that the share prices for the India's largest bike-maker fell by 1% coming down to Rs. 1,956. The dip in share prices was noted post announcements stating reduction in prices for its two wheelers.
Officials from Hero MotoCorp, said, “We have decided to pass on the entire benefit of the excise duty cut to our customers. We have judiciously spread out the price cut across our product portfolio ranging from 2% going up to 5% with the maximum reduction being Rs 4,500.” The Indian bike-maker came up with a considerable amount of discount for almost it entire production lot, the maximum reduction announced was of Rs. 4500. Competitor Honda Motorcycle & Scooter India, has also announced hefty discounts from its production line to boost its sales owing to excise duty cut. Sources from Honda Motorcycle & Scooter India said, “Honda welcomes excise duty relief given to auto industry in the interim Budget. Honda has decided to pass the full benefit of 4% excise duty reduction on two-wheelers to its valued customers across India with immediate effect.”
Slump in auto sales is said to be the lowest one noted in past 11 years. P Chidambaram, said, “To give relief to the automobile industry, which is registering unprecedented negative growth, I propose to reduce excise duty.” As per the new excise duty regulations, Small cars, two wheelers and commercial vehicles shall come down to 8% from previous 12% that was payable till date. SUV segment is liable for 24% excise duty as against 30% that was payable earlier. The fall noted was nearly 9.59%. As per the Interim Budget 2014 the cut in excise duty shall be valid up to June 20, 2014. Excise duty on mid-sized cars will go down to 20% as against 24% noted in the previous year.
