New Delhi: Prices of small cars, Motorcycles and SUVs are likely to come down by 3 to 4 percent immediately as automakers are expected to fully pass on to the buyers the excise duty reduction announced in Monday's interim Budget.
"We could see vehicle prices go down by 3 to 4 percent. 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 percent to 24 percent, in large and mid-segment cars it has been reduced from 27-24 percent to 24-20 percent.
Excise duty on small cars, motorcycles and commercial vehicles have been cut from 12 to 8 percent and appropriate cuts are to be done on chassis and trailers.
