India increases excise duty for large cars

The Indian government has slapped an additional specific duty over and above the regular excise duty of 24% on all large cars, in a bid to dampen the growth of gas-guzzling vehicles. The increase in car prices comes even as fears of a further price escalation are doing the rounds following the jump in steel prices. The specific duty would be Rs20,000 (US$467) for cars with an engine capacity of 2000cc and above, while the duty would be Rs15,000 (US$350) for cars from 1500cc to 1999cc. Sales of luxury car brands like Audi, Daimler Chrysler and Skoda are likely to be affected by the present move, while Honda Siel Car India may take the biggest hit as it is the market leader in the premium-car segment. (June 14, 2008)