Budget highlights for Auto Industry

Budget headlines:-

• Excise duty on small cars cut, reduced to 12% from 16%.
  
• Excise duty down on 2 & 3 wheelers to 12% from 16%.
• Excise duty on Hybrid vehicles reduced to 14% from 24%.
• Customs duty on imported vehicles unchanged.
  

What this means is 2 wheels and small cars will be cheaper by around 4%.

Hyundai Motor India and General Motors today said they would slash prices by up to Rs 16,000.

The price cut on Santro could be between Rs 12,000 and Rs 14,000, while that on Getz would be between Rs 14,000 and Rs 16,000. Price cut on the newly launched i10 could be between Rs 12,000 and Rs 16,000.

General Motors is also cutting the price of its small cars Spark and Aveo U-VA.

Reductions for Maruti cars range from 6,500 rupees for the Maruti 800 model to 18,030 rupees for the diesel-powered Swift hatchbacks.

Reactions from the Industry:-

"We have decided to pass on the benefit of the excise duty cut to customers on three models--Santro, i10 and the Getz-- effective April 1,"
- Hyundai official

"We will be cutting the prices of our small cars between Rs 7,500 and Rs 14,000,"
- GM India Vice-President P Balendran

"While the step was a welcome one, it would create a further gap between the small cars and the big cars segment."
"The excise cut on Hybrid cars, would not benefit the customers much as the hydrid would be fully imported and the customs duty has not been changed."
-Honda Siel Car India Senior (HSCI) General Manager Jnaneswar Sen

"Very good, but unexpected to stop degrowth. Finance availability is a major issue."
- Suzuki Motorcycle India Vice-President Sales and Marketing Atul Gupta

"It was really heartening to hear the union finance minister announcing the slash in excise as this will result not only in bringing down prices but also in boosting the sagging sales of two-wheelers."
- Niraj Bajaj Director Bajaj Auto Ltd

"The market had been wanting this to arrest the slide in demand in recent months.''
- Mr. Munjal Managing Director Hero Honda

source:-
The Economic Times
Bloomberg
Mytoday