Hyundai may hike prices if excise duty rises before Budget

The company, which is India's second largest carmaker by volume, said it had passed on the entire benefit to the customers while absorbing the impact of change of value on dealer stock which was compensated to dealers when the government reduced excise duty in February.
   
"In line with the same, if there is any government directive on increase in excise duty during pre-budget phase, we will comply with government notification which will then lead to increase in car prices," a company spokesperson said.
   

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.
   
The reduction in excise duty, given to the auto sector with an aim to give some impetus to sagging sales, is applicable till June 30.
   
Most of the carmakers had passed on the benefit of excise duty reduction to customers by cutting product prices.
   
According to SIAM, excise rates would revert back to the earlier level after June 30. The auto industry body has been lobbying hard with the government for extension of the reduced excise rates...

Source: Auto News in Hindi