Stimulus plans - Excise cut to boost demand for commercial vehicles
ET reported that prices of trucks are expected to fall by INR 15,000 to INR 100,000 if makers pass on the entire benefit to customers. Hybrid vehicles and three wheelers ferrying goods could also be cheaper by up to INR 28,000 and INR 6,000, respectively, on their ex-showroom prices. Prices of small cars, sedans and two wheelers will remain unchanged.
Mr Ravi Pisharody vice president (sales and marketing) said that TATA Motors may reduce prices by up to INR 50,000. He said that “The rate cut will help boost demand."
Mr S Sandilya chairman of Eicher Motors said that "The third stimulus will boost demand for commercial vehicles facing declining sales. The further cut in excise duty will improve the financial position of truck makers who are under severe constraint."
Ashok Leyland quoted a price reduction which will come into effect in the next few days. The company spokesperson said that "We are looking at a cut of INR 15,000 to INR 35,000 for our trucks. The exact quantum of changes will be announced shortly."
Mr Ravi Chopra CMD of Piaggio Vehicles said that "We shall pass the entire 2% excise benefit to customers as we did in December. We expect banks and financial institutions to ease lending norms to tide over the crisis." It will reduce price by up to INR 5,000 per vehicle.
Besides vehicles, automotive tyres will also be cheaper by up to INR 500 with the excise coming down to 8%. Mr Onkar S Kanwar CMD of Apollo Tyres said that "We will pass on the excise reduction to our customers as in the past. The move is likely to boost demand for manufacturing as well as other sectors."
Truck sales have been declining in recent times. Sales fell 72% to 6,491 units in January against 23,968 in the same month last year. Commercial vehicle manufacturers have been lobbying with the government to cut taxes. They have also asked banks and financial institutions to ease lending norms for customers.
(Sourced from Economic Times)
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