25/02/2009 New Delhi Telegraph
Todays tax cuts will not impact the prices of small and large cars, which have excise duties of 8 per cent and 20 per cent, respectively.
Sales of hybrid cars, trucks, three-wheelers, light commercial vehicles and medium and heavy commercial vehicles may get a lift.
However, the industry will benefit from the lower costs of steel, plastic and auto components, which have enjoyed reliefs.
Stand-in finance minister Pranab Mukherjee reduced by 2 per cent the excise duty on all goods that currently attract a 10 per cent levy.
Small car leader Maruti Suzuki India, however, is not impressed. There is no 2 per cent across-the-board reduction. It is only on segments which attract a 10 per cent excise duty. To the best of my knowledge, this will, therefore, leave prices unchanged for small and big cars, said R.C. Bhargava, chairman of Maruti Suzuki.
The slowdown has led to car sales falling 3.2 per cent in January, the sixth time in seven months. According to the data published by the Society of Indian Automobile Manufacturers, car makers sold 1.10 lakh units, down from 1.13 lakh sold a year earlier.
After Mukherjees announcement in the Lok Sabha, Tata Motors and Ashok Leyland said they were expecting higher sales of commercial vehicles. A Rs 10-lakh vehicle will become cheaper by Rs 18,000-20,000, R. Seshasayee, managing director of Ashok Leyland, said.
Truck sales have suffered badly. The demand for trucks and buses have more than halved to 23,157 units in January.
The government has also extended the across-the-board excise duty cut by 4 per cent beyond March 31, 2009.
In its second stimulus package, the government has allowed 50 per cent depreciation on commercial vehicles purchased between January 1, 2009 and March 31, 2009
Todays tax cuts will not impact the prices of small and large cars, which have excise duties of 8 per cent and 20 per cent, respectively.
Sales of hybrid cars, trucks, three-wheelers, light commercial vehicles and medium and heavy commercial vehicles may get a lift.
However, the industry will benefit from the lower costs of steel, plastic and auto components, which have enjoyed reliefs.
Stand-in finance minister Pranab Mukherjee reduced by 2 per cent the excise duty on all goods that currently attract a 10 per cent levy.
Small car leader Maruti Suzuki India, however, is not impressed. There is no 2 per cent across-the-board reduction. It is only on segments which attract a 10 per cent excise duty. To the best of my knowledge, this will, therefore, leave prices unchanged for small and big cars, said R.C. Bhargava, chairman of Maruti Suzuki.
The slowdown has led to car sales falling 3.2 per cent in January, the sixth time in seven months. According to the data published by the Society of Indian Automobile Manufacturers, car makers sold 1.10 lakh units, down from 1.13 lakh sold a year earlier.
After Mukherjees announcement in the Lok Sabha, Tata Motors and Ashok Leyland said they were expecting higher sales of commercial vehicles. A Rs 10-lakh vehicle will become cheaper by Rs 18,000-20,000, R. Seshasayee, managing director of Ashok Leyland, said.
Truck sales have suffered badly. The demand for trucks and buses have more than halved to 23,157 units in January.
The government has also extended the across-the-board excise duty cut by 4 per cent beyond March 31, 2009.
In its second stimulus package, the government has allowed 50 per cent depreciation on commercial vehicles purchased between January 1, 2009 and March 31, 2009
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