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Prices of small cars, Motorcycles and SUVs are likely to come down by 3 to 4 per cent immediately as automakers are expected to fully pass on to the buyers the excise duty reduction announced in today's interim Budget.
"We could see vehicle prices go down by 3 to 4 per cent. I would presume that most automakers would pass on the entire reduction to consumers,".
"Almost everybody will do it immediately because nobody is going to buy the cars now without further price reduction," Mahindra & Mahindra executive director & president - automotive Pawan Goenka told reporters at at a CII event here.
While excise duty on SUVs has been cut from 30 per cent to 24 per cent, in large and mid-segment cars it has been reduced from 27-24 per cent to 24-20 per cent.
Excise duty on small cars, motorcycles and commercial vehicles have been cut from 12 to 8 per cent and appropriate cuts are to be done on chassis and trailers.