Government reduces excise duty on big cars; car makers slash prices

Several car makers in the country have slashed car prices following the announcement of the budget this week. The budget has reduced the excise duty on cars with engine capacities exceeding 2000cc by Rs 5,000 per unit. The duty on petrol-run trucks has also gone down from 20 per cent to 8 per cent. Hindustan Motors was the first company to act after the excise cut was announced, reducing the prices of its SUVs – the Pajero, the Outlander and the Montero – by Rs 6,000 each. Ford India soon followed suit and reduced the price of its premium SUV, the Ford Endeavour , by Rs 6,000. Hyundai Motor, the country’s second largest passenger car maker, slashed the Sonata Transform’s prices by Rs 5,000, while Honda Siel Cars India (HSCI) slashed the prices of the Accord and the CR-V by Rs 5,000 each. Honda had earlier said it would not reduce prices because of the depreciation of the rupee. Meanwhile, GM India, BMW and Toyota Kirloskar Motors have also announced that they will be passing on the excise benefit to customers. Tata Motors is yet to announce its decision on price reduction.