Cars and two-wheelers set to fall as Chidambaram cuts duty

Finance Minister P Chidambaram today announced a reduction in excise duty on small cars, motorcycles and scooters from 12 % to 8%. Now the price of cars and two-wheelers will come down. The cut in duty will be applicable from June 20, 2014, when the government is expected to bring the full year budget.

Mr Chidambaram also brought down the excise duty on mid and large segment cars to 20 per cent, while duty on Sports Utility Vehicles or SUVs has been brought down to 24 per cent from 30 per cent.

As Indian economy is growing at the slowest pace in a decade Finance minister P Chidambaram has done this cut in duty with the aim to spur domestic manufacturing. In  the first nine month of  fiscal year 2013/14 the industrial output has fallen 0.1 per cent, annual car sales declined by about 5 per cent  year ago 2013.

It is a good turning point for the Automobile Manufacturers and seller to make their stand strong in the Indian market and to grow faster this year than the last fiscal.