The 2014 Interim Union Budget brought cheer to automakers and buyers alike what with the reduction in excise duty across car segments and body styles. From mass market car makers such as Maruti Suzuki and Hyundai to niche luxury players such as Mercedes Benz and Audi, automakers across the spectrum have gone in for price cuts across their product portfolios.
The interim union budget of India has cut excise duty on cars and two wheelers in order to give a leg up to the automobile industry, which is suffering the pangs of a slowdown in sales. The interim budget runs until June 30th, 2014, after which the new government at the centre will present a new budget. A decision on whether to continue with the excise duty cuts will be taken by the new budget.
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Interestingly, while some car makers have passed on the full excise duty reduction to buyers, others have passed on only a partial excise duty reduction to buyers, choosing to retain some of the lowered excise for themselves. In this report, CarToq lists out the lowered quantum of price cuts across car brands.
Alto 800 Rs. 8,502, Omni Rs. 8,698, Alto K10 Rs. 11,304, Eeco Rs. 10,881, Estilo Rs. 12,148, WagonR Rs. 12,578, A-Star Rs. 13,482, Celerio Rs. 13,615, Ritz Rs. 15,130, Swift Rs. 15,874, Dzire Rs. 17,884, Ertiga 18,747, SX4 Rs. 30,984
Rs. 10,000 – 135,300
Mahindra & Mahindra
Rs. 13,000 – 49,000
Rs. 92,000 on the Rexton SUV
Rs. 14,650 – 44,741
4 – 6 % price cuts on Sunny, Terrano, Evalia, Teana, Micra and Micra Active.
Rs. 14,500 – 51,000
Rs. 8,000 – 12,000
Tata Motors, Toyota and General Motors have announced that they will pass on the excise duty cut to customers but are yet to announce the exact price reductions. Price drop announcements from these car makers are expected shortly. Ford, Skoda and Renault have not made any announcements regarding the price cuts due to the lowered excise duties.