The government of India’s Budget naturally raises expectations. The Budget 2009 proposed to reduce the additional excise duty on big cars. It also cut the duty of petrol-driven trucks to eight per cent from 20 per cent at present.The middle class expected an almost certain fall in price of the small cars but they were left disappointed.
The relief provided in the prices of the cars is only in the category of four-wheelers whose engine capacity is 2,000 CC and above. Auto manufacturers have starting announcing their price cuts on big cars and pass on the duty benefit to their customers.
Passing on the benefit of the excise cut on big cars, auto major Hindustan Motors Ltd (HML) on Monday reduced the prices of its partner Mitsubishi’s vehicles Pajero, Outlander and Montero cars in the country by Rs 6,000. The price cut will take effect from July 7.
Tata Motors also stated that it will soon announce new prices of its models in India. General Motors, BMW, and Toyota also stated that they will pass on the excise duty benefit to their customers.
Honda Siel Cars India Limited refused to cut prices on its models. Honda feels that there is lot of pressure on bottom line due to depreciation of Rupee in the international market.