Finance Minister P Chidambram’s plea to the auto industry to reduce product prices has met with a rather unenthusiastic response from auto majors. Companies such as M & M, Hyundai, Bajaj Auto and Hero Honda have said a clear no to the FM’s appeal, stating reasons like increasing input and operational costs, a disappointing last quarter and the generally low profit margins on automobile sales to explain their inability to cut prices.
Auto sector bigwigs like Pawan Goenka and Rahul Bajaj said that if the Finance Ministry were to reduce excise duty, their companies would not hesitate in passing the benefit to consumers, echoing the sentiment of almost all vehicle manufacturers.
