Chennai:
Prices of
automobiles, including cars, sports utility vehicles and two-wheelers, are set
to come down as car manufacturers said the decision to slash excise duties will
benefit their customers.
Sunil Rekhi, chief
financial officer of Nissan Motor India Pvt. Ltd said the move is a welcome one
for the economy especially when the auto sector is looking for strong support
from the government for a growth stimulus as it is struggling with the negative
growth for most part of this year.
“We believe that this
reduction in Excise Duty will reduce the acquisition price. Thus making the
vehicles more affordable which should improve the consumer sentiment and
hopefully revive negative growth for vehicles,” he said.
A Daimler India
Commercial Vehicles spokesperson welcomed the decision by the Government. This
move comes at a point when the customers are facing difficult times. DICV will
pass on the entire value to the customer in line with our transparent pricing
policy. The decision will benefit the customers
Pawan Goenka, executive
director and president (AFS), Mahindra and Mahindra said that if these initiatives
are maintained in the final financial year 2015 budget, it should be a much
needed positive stimulus for overall manufacturing sector in India”.
Southern Indian Chamber of Commerce and Industry said India's
auto sector was facing unprecedented slowdown and car sales fell 5 per cent in
2013.
Hence the proposal to reduce the excise duty for small
cars from 12 per cent to 8 per cent and from 30 percent to 24 per cent for SUVs
is quite welcome.
The chamber also
welcomes the proposal to set up research funding organisation for funding
research in science and the announcement that contribution to this shall be
exempt from tax, as it will incentivize the industrial growth and innovation.
The reduction of excise duty from 12 per cent to 10 per
cent for capital goods and consumer durables is shot in the arm for the sector,
especially the indigenous industry, SICCI added.
Excise duty cut
reduced for the period up to June, 30, 2014.
Small Cars 4%
Medium Cars 4%
SUVs 6%
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