Earlier this week, the Finance Minister reduced the excise duty imposed on Indian four wheelers & two wheelers. The drop in excise duty rates was meant to support the struggling automobile industry which would result in price reductions.
The revised excise duty figures is listed below.
- Motorcycles, scooters & small cars: Down from 12 percent to 8 percent
- Medium sized cars: Down from 24 percent to 20 percent
- Large Cars: Down from 27 percent to 24 percent and
- Sport Utility Vehicles: Down from 30 percent to 24 percent
Based on these numbers manufacturers have started announcing their revised prices for their products. While the prices reduced are small for two wheelers, they increase as the value of the vehicle goes up.