Two Wheeler Prices to decrease soon in India

We all aware that the Indian government has announced to cut down excise duty on automobiles and this will decrease the price of vehicles. Both the customers of two and four wheeler segment will be benefited with the decrement in prices. Appraising the decision of our Finance Minister- Mr. P Chidambaram, Society of Indian Automobile Manufacturers (SIAM) said that not only the vehicle market, but many other markets in touch with the Indian Automotive industry will be benefited by this relaxation in excise duty.

Confirmation received by SIAM says, "Mr. Vikram Kirloskar, President, SIAM has welcomed the announcements made by the Finance Minister in the Vote on Account presented today. SIAM would like to thank the Finance Minister for recognizing the need for a more moderate tax structure for the automotive industry and for accepting SIAM's tax related recommendations, he said."

Mr. Kirloskar said, "We believe that this reduction in Excise Duty would reduce the acquisition price thereby making vehicles more affordable which would improve the consumer sentiment and hopefully revive the demand for vehicles, Mr. Kirloskar added. The Automotive industry is the engine of growth for the manufacturing sector as a whole as it supports key industries like auto-components, capital goods, raw materials, electronics, chemicals, plastics, software etc. Revived growth in the automotive industry would have significant positive impact on these key downstream and upstream manufacturing sectors that largely depend on the performance of the auto sector. This could hopefully herald a revival of the manufacturing sector in the days to come."

Mr. Shirish Kulkarni, Chairman DSK Hyosung also confirmed that their customers will be benefited with the tax relaxation and this will also give a positive growth to the sector. "We at DSK Hyosung welcome this change which comes as a great relief to the Automobile Industry that has been suffering from negative growth. We will ensure that the benefits of reduction in excise duty from 12% - 8% are made available to our customers. We are sure relaxation on excise duty in this interim budget will foster and stimulate the growth in the entire automobile sector. Our concern lies in the fact that the duty shouldn't be changed post elections. This benefit has to be sustained until the entire automobile sector reflects a growth back to 12 % - 15% at least," He said.