Duty Cut Drives Down Car Prices, Merc Cheaper by up to Rs 2 Lakh
By Jonathan Ananda | Published: 18th February 2014 08:32 AM |
Auto majors began announcing cuts in car prices amid mounting enquiries from prospective customers just hours after Union Finance Minister P Chidambaram slashed excise duty for automobiles on Monday.
Mercedes-Benz was the first to announce revised rates. Audi, Tata Motors and General Motors too divulged their plans to revise prices. Other auto-makers like Hyundai and Maruti Suzuki are expected to follow suit.
Mercedes-Benz said the prices of the popular C, E and GL classes, ex showroom in Delhi, would come down by Rs 55,000, Rs 76,000 and Rs 2 lakh respectively.
“We expect the reduction of duty on cars and SUVs to significantly boost the automobile industry,” Managing Director and CEO Eberhard Kern said.
Audi cut the price of its premium SUV Q7 by Rs 3.82 lakh to Rs 78.28 lakh from the earlier price of Rs 82.11 lakh, PTI reported.
Other automakers, including General Motors India, Toyota and super-bike maker DSK Hyosung, said they are looking to cut prices.
Meanwhile, automobile dealerships in Chennai were swamped with enquiries from customers on how much prices had come down.
Manikandan, speaking on behalf of Hyundai Motor Plaza said that the sales department was awaiting notification from the head office.
“But we are seeing a definite spike in interest,” he said.
The dealership saw an increase in enquiries by about 20 per cent on Monday with sources saying that 5-6% of those enquiries are likely to result in sales.
A Tata Motors spokesman was quoted as saying by PTI that the duty benefit will be passed on to the customers from Tuesday itself.
GM (India) Vice President P Balendran said that they are now determining the exact amount of reduction.
The Union Finance Minister announced excise duty cuts to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles; 24 per cent from 30 per cent for SUVs; 20 per cent for mid-sized car from 24 per cent and 24 per cent for large cars from 27 per cent.