Budget effect: High end cars to become slightly cheaper

Budget effect: High end cars to become slightly cheaper

In the just announced Union Budget, Indian Finance Minister Pranab Mukherjee proposed to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit.

This means that high end cars could now become slightly cheaper in the Indian market.

Hindustan Motors has become the first automaker in the country to announce a price cut. They have reduced the prices of their models like Mitsubishi Pajero, Mitsubishi Outlander and Mitsubishi Montero.

BMW, General Motors and Toyota along with Tata Motors have also announced that they are soon going to announce a price cut on the higher end models.

GM said: “We will pass on the benefits of this excise duty cut to our customers immediately.”

Toyota had this to say: “We have always been passing on all benefits to the customers, which we get from the government. Though this cut is very minimum, still we will pass on this.”

Honda has bad news for the customers who are considering buying their cars: “We will not cut prices. There is lot of pressure on bottom line due to depreciation of Rupee in the international market.”