Car prices in India to go down as government reduces CENVAT by four per cent

Car prices in India to go down as government reduces CENVAT by four per cent

The Indian government has reduced the CENVAT by four per cent.

This would enable the automakers in the country to reduce the prices of their models.

Maruti, Tata Motors, GM India and Mahindra & Mahindra have already announced that they would pass on this benefit to their customers.

Maruti Alto price could go down by around Rs. 8000 due to this cut. Bigger models are likely to see a larger price cut.

Maruti Suzuki Chairman R C Bhargava spoke in a statement: “A four per cent reduction in CENVAT means price of each product will come down by four cent… as per my understanding all car prices are likely to come down by four cent.”

This is however unlikely to boost the demand in the market as customers avoid purchasing new cars in the month of December as it lowers the value of the car on reselling.