Auto Makers Relieved As Reduced Excise Rates Extended Till Dec

New Delhi: Heaving a sigh of relief over the government's decision to extend reduced excise rates till December 31, auto industry welcomed the move saying it would help the sector overcome the prolonged demand slump.

"It will be good for the auto industry. The momentum that has been built in last few weeks will continue," Maruti Suzuki India Chief Operating Officer (Marketing and Sales) Mayank Pareek said.

Expressing similar sentiments, Honda Cars India Senior Vice-President (Marketing & Sales) Jnaneswar Sen said: "The industry has had a tough couple of years. We had just started seeing some rays of hope last month and with this extension of the reduced excise rates, we can look forward to building the momentum."

He also said the announcement from the government clears the uncertainty of what will happen after June 30 deadline "and is a much needed support to the industry from the new government".

While the Budget is slated to be presented on July 10, in the Interim Budget in February, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 percent from 12 percent.

It was reduced to 24 percent from 30 percent in the case of SUVs, 20 percent for mid-sized car from 24 percent and 24 percent for large cars from 27 percent.

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