Budget impact: Carmakers announce price cuts

Volkswagen on Wednesday announced reduction in prices of all its cars in the Indian market, consequent to excise duty cuts in the Interim Budget early this week.

Prices of Volkswagen Polo have been reduced by Rs 18,000-Rs 31,000. For Vento, prices have been reduced by Rs 14,500-Rs 27,000. Jetta prices have been reduced by Rs 38,000-Rs 51,000, the company said.

In a statement, Volkswagen Passenger Cars MD Arvind Saxena said,“We at Volkswagen have decided to pass on the entire benefit to our customers. We hope this move will help improve the market sentiment in the automotive industry.” Excise benefits will be applicable with immediate effect.

In a related development another carmaker, Nissan Motor India also announced price reduction of its vehicles by up to 6 per cent from February 18 following a cut in the excise duty announced in the Interim Budget.

In a release issued  on Wednesday,  Nissar Motor said, “The price reduction by Nissan is in the range of 4 to 6 per cent and will apply to Micra Active, Micra, Sunny, Evalia, Terrano and Teana.”

Stating the reduction in excise duty is a welcome move towards the revival of the domestic automobile industry, Nissan Motor India president Kenichiro Yomura said that the reduction in excise duty is a welcome move towards the revival of the domestic automobile industry. Maruti Suzuki India (MSI) and Hyundai Motor India also announced price reduction on Wednesday following the duty cuts announced in the Budget.

While price cuts by MSI range between Rs 8,502 and Rs 30,984 across various models, Hyundai has slashed prices by between Rs 10,000 and Rs 1,35,300.The entire benefit of the excise duty cut is being passed on to customers for the full range of models, MSI said in a statement.

Hyundai Motor India (HMIL) also said customers would get the full benefit of the excise duty reduction. The price cut applied to all the models, from Eon to Santa Fe.

“The reduction in excise duty would substantially reduce the prices, making cars more affordable. The quantum of benefit will vary from Rs 10,000 to Rs 1,35,300 across all the models,” HMIL Senior Vice President, Sales and Marketing, Rakesh Srivastava said.