Cars go cheaper after cut in Cenvat tax

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Cenvat Tax Cut- Cars go cheaper
Mumbai, Dec 9: After the Indian government announced a 20,000cr stimulus package to counter the global economic crisis the automakers have decided to pass on the benefits of tax cut to consumers. After the tax cut announcement the car prices are down between Rs 6000 to Rs 76,000.

Maruti Suzuki's 800 will cost Rs 6000 less after the new tax cuts. SX4 Sedan and Sedan D'zire will be about Rs 20,000 cheaper. Hatchback prices (Alto, WagonR and Zen), too, are down between Rs 9000 and Rs 17000. The recently launched A Star's price has also been reduced.

Maruti Suzuki India chairman R C Bhargava said, "4 pc reduction on Cenvat means that every product will come down by four per cent including commercial vehicles, passenger cars and two wheelers. Everybody will get the benefit of four per cent." General Motors also cut the price of cars between Rs 8000 and Rs 22,000. Hyundai, too, has cut prices of all its cars - by Rs 8,800 at the lower end to Rs 44,700 at the higher end.

Arvind Saxena, Vice President Marketing and Sales, Hyundai Motors India said, "Today we have finally worked out and also announced in the market that our products would be cheaper by about Rs 8,800 to 44,700 depending on the model and variant."

Mitubishi has cut prices by about Rs 25,000, while Toyota Motors car prices are down by Rs 33,000 to Rs 76,000. Truck makers like Ashok Leyland could drop prices by Rs 32,000 to Rs 35,000. Reports say that the two wheeler makers are also expected to announce price cuts soon.


OneIndia News (With inputs from Agencies)

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