One after another, almost every auto manufacturer in the country has announced a price cut, as the excise duty on automobiles was reduced in the latest Interim Budget. Today, Korean carmaker Hyundai made an announcement that it will pass on the full excise tax benefit to its customers in India. The price deduction benefit will be applicable to all the models from Eon to top-of-the-line Santa Fe.
Commenting on the passing of the benefit of reduction of Excise Duty to the Customers, Mr. Rakesh Srivastava, Sr. Vice President, Sales and Marketing, HMIL said, "The reduction in Excise Duty would substantially reduce the prices, making cars more affordable. The quantum of benefit will vary from Rs. 10,000/- to Rs. 1,35,300/- across all the models. Hyundai Motor India Ltd will extend the benefit of these excise duty cuts to customers with immediate effect & will also support its dealerships suitably.”
The prices of the cars have come down from INR 10,000 to INR 1,35,000, depending on the respective models. The new prices across all the models have come into effect immediately. Currently, the Indian automobile industry is going through a sales-slump phrase, therefore the cut in excise duty has come as a great relief for the automakers and seems as a great opportunity to scale up the drowning sales. Excise duty for small cars has come down to 8 percent from 12 percent, while for SUVs, it is 24 percent now as against 30 percent charged earlier.