Indian automakers desire for uniform excise duty

Indian automakers desire for uniform excise duty

Automakers in India including Hyundai, Honda, Toyota and General Motors are asking the Indian government to extend the excise duty concessions on small cars to medium and big cars.

However, market leaders Maruti seems to be happy with the current scenario considering they benefit the most from the low duty on compact cars.

These automakers have said that the current duty structure was “not favorable and created market distortions”. And they have asked the Society of Indian Automobile Manufacturers (SIAM), the apex auto industry body, to seek a uniform excise duty structure on all types of cars and mutli-utility vehicles.

SIAM president Madhur Bajaj said in a statement on this development: “Yes, we have recommended to the government that the excise duty should be uniform across all car segments, big or small.”

A Hyundai India representative added his company’s view: “In our opinion, it (duty structure) is not very correct. We feel that the duty structure should be uniform for all the cars.”