VE Commercial Vehicles cuts prices by up to Rs 2 lakh

VE Commercial Vehicles (VECV), a joint venture between Eicher Motors and Swedish major Volvo, today slashed the prices of its products by up to Rs 2 lakh on account of four per cent reduction in Cenvat.

The price cut for the regular models of Volvo trucks would be between Rs 1.25 lakh and Rs 2 lakh, VE Commercial Vehicles (VECV) said in a statement.

The company has reduced the prices of Eicher trucks and buses by Rs 16,000-37,000, it added.

"VECV welcomes the decision of the central government to reduce Cenvat and petroleum prices so as to boost the demand for commercial vehicles. However, the most critical factor in the current business environment that needs to be addressed is the availability of credit with competitive rates of interest," VECV Vice-President (Sales and Marketing) Somnath Bhattacharjee said.

Though the key rates -- repo and reverse repo -- and amount of deposits banks must park with the apex bank and in government securities (CRR and SLR) have been reduced, the company expects clear steps from the government for improving retail finance availability and lowering the interbank rates in order to improve customer confidence and sales levels, he added.