Commercial vehicle makers reduce prices after cuts in excise duty

Commercial vehicle manufacturers are cutting prices following the excise duty reduction announced by the Indian government as part of its third economic stimulus package. The excise duty on trucks and auto components was reduced from 10% to 8%, prompting carmakers Tata Motors Ltd. and Ashok Leyland to slash prices. Meanwhile, Japanese carmaker Honda Motor Co. said its Jazz hatchback would hit Indian roads by mid-2009. However, the compact car may trail the company’s City sedan in terms of sales volume, as the Jazz is a more high-end model, the company’s subsidiary Honda Siel Cars India said. (February 26/ March 15, 2009)