India’s automakers see boost in sales from cut in excise duty

Car prices could come down by up to Rs45,000 (US$941) and bus and truck prices by as much as Rs200,000 (US$4,000) if manufacturers pass on the full benefit from the 4% cut in excise duties announced by the Indian government, officials said. Tata Motors, India’s largest commercial vehicle and second largest passenger vehicle maker, also announced a transfer of all excise benefits to the customers. Officials say cars and sport utility vehicles (SUVs) could see cuts ranging between Rs8,000 (US$167) to Rs45,000 (US$941), while in the case of trucks and buses, the cuts could be between Rs30,000 (US$627) and Rs200,000 (US$4,000) if manufacturers pass on the full benefit of the duty cut to customers. (December 8, 2008)