Car makers reduce prices on excise cut

Maruti Suzuki, Tata Motors and Nissan among companies which cut the prices

Vehicle manufacturers ranging from hatchback to sports utility vehicle makers have announced a price cuts ranging from Rs 10,000 to Rs 135,000 with immediate effect, following a reduction by the government on excise duty in the interim budget.

While market leader Maruti Suzuki and Tata Motors announced price cuts yesterday, German car maker Volkswagen, SUV leader Mahindra & Mahindra, Korean brand Hyundai and Honda today also announced a price reduction on their models.

Volkswagen has reduced prices of all its cars with prices for the Polo cut by Rs 18,000-Rs 31,000. For the Vento, prices have been reduced by Rs 14,500-Rs 27,000 while on the Jetta prices have been reduced by Rs 38,000-Rs 51,000.

“We welcome the Government’s decision to reduce excise duty on cars and we at Volkswagen have decided to pass on the entire benefit to our customers. We hope this move will help improve the market sentiment in the automotive industry,” said Arvind Saxena, Managing Director, Volkswagen Passenger Cars.



India's second largest passenger vehicle maker, Hyundai Motor India said that it too will pass on the full reduction of excise tax benefit to customers in India. The price deduction benefit will be applicable to all the models from Eon to Santa Fe and will be up to Rs 135,300.
 
Rakesh Srivastava, Sr. Vice President, Sales and Marketing, HMIL said, "The reduction in excise duty would substantially reduce the prices, making cars more affordable. The quantum  of benefit will vary from Rs 10,000 to Rs 1,35,300 across all the models."

The new prices across for all HMIL models would come into effect from 18 Feb 2014.

Mumbai-based Mahindra & Mahindra, announced a reduction across its portfolio ranging from Rs 13,000 to Rs 49,000. The company will also reduce prices of its premium SUV, the Rexton by up to Rs 92,000.



Pravin Shah, Chief Executive, Automotive Division, M&M, said, “We are delighted at the Interim Budget announcements which have been taken to boost the automotive industry. We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry. The prices of our range of commercial vehicles are also being reduced.”

Honda Cars India, also announced a reduction in the price of its models in the range of Rs 14,650 to Rs 44,741. Its top selling model Amaze thus comes at a reduced price of Rs 499,900 while the new City sedan comes at Rs 719,000. Brio, the only hatchback in its line-up is priced at Rs 399,900, (all prices, ex-shwowroom, Delhi).

Jnaneswar Sen, Sr. Vice President Marketing & Sales, Honda Cars India Ltd said, “We welcome this move by the government. The reduction in duty will give the necessary boost to consumer demand and fuel growth in the auto industry. We are happy to pass on the benefit of the duty reduction to our customers."

Nissan too confimed it will pass on the full benefit of the excise duty cut to its customers. The price reduction by Nissan is in the range of 4 – 6% and will apply to  Micra Active, Micra, Sunny, Evalia, Terrano and Teana. The new prices will be effective from February 18, 2014.

Kenichiro Yomura, President, Nissan India Operations said, “The reduction in excise duty is a welcome move towards revival of the Indian automobile industry. We at Nissan are happy to pass 100% of the tax benefits to our customers. We are confident this will make our products more accessible and drive growth across the range.”