Budget 2014: Cars to get cheaper with Excise cuts

The Union Finance Minister P. Chidambaram announced reduction in excise duty auto sector, bringing some respite for the beleaguered auto sector.

Reacting to the interim budget industry body CII said "We welcome the budget presented in the house today. He has made some positive announcement for the infrastructure, auto sector which will definitely augur positive for the economy. The steps taken to address inflation and current account deficit is also a positive." CII spokesperson said.

The finance minister reduced the central excise on small cars, scooters/two-wheelers from 12 to 8 percent. He also reduced the central excise from 30 percent to 24 percent on SUVs, and medium segment cars sedans from 27-24 percent to 24-20 percent, respectively.

Ex- SIAM President and President Mahindra Auto & Farm Sector, Pawan Goenka welcoming the budget said : "It was a very nice budget, he did not fall for populist measure despite its being electioneering months. He has announced cut in excise duty of cars, SUVs, farm equipment and bikes which will definitely help in revival of demand."

"However, I did not hear anything for the commercial vehicle which is badly hurt. I hope that there is something to revive this sector." Goenka added.