The Indian automotive industry was going through some of its worst days in the last few months. Whenever there is a crash in the economy of a country, the first sector to be affected is the automotive sector, unfortunately, the last sector to get revived is also the same.
The new government, in its attempt to keep the sector fueled up for a brighter future had earlier in June, decided to continue with the excise duty benefits which the previous government had initiated, but only till December 2014. Now, as per a report published on Economic Times, the excise subsidy will continue to play its role beyond December, at least till March 2015, according to Anant Geete, Minister for Heavy Industries.
Small cars (under 4 meter and less than 1.2L petrol/1.5L diesel engines) and two-wheelers will continue to attract lesser 8 percent excise duty. The benefits help reduce the excise duty on SUVs from 30% to 24%. Large cars will continue to attract a duty of 24 per cent from 27 per cent slab. The mid-size cars will also remain at the same stand point at 20 per cent, down from 24 per cent.
The past few months has seen some good times with improvement in sales and automotive companies have recorded some much awaited volume figures which can be expected to be the signals of initiation of the revival. The industry needed a strong assurance from the government and the continuation of the excise duty benefits are the first of the many steps needed to boost the sector.
So, even after the festive rush, you can continue to enjoy the same ‘reduced’ prices of cars and motorcycles, at least till March 2015, though the discounts may not continue 🙂