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Car prices fall with reduction in CENVAT
December, 11th 2008
As a result of recent reduction in central value added tax rate, car prices have come down. Car manufacturers in India have decided to pass the complete four per cent benefit to the consumers so that the falling car market can be revived. CAR PRICES have fallen down with reduction in CENVAT (Central Value Added Tax) rate announced by the Indian government. Earlier, car manufacturers were paying a tax of 12 per cent on small cars and 24 per cent on other passenger cars. Recently, the government reduced the rate to eight per cent on small cars and 20 per cent on other cars. It is a complete four per cent reduction in the excise duty. Car companies in India now desire to pass the complete four per cent benefit to the consumers so that the falling car market can be revived. All the car manufacturers have reduced the car prices of their respective car models. Maruti Suzuki, Hyundai Motors, Mitsubishi and Toyota have cut their car prices by 3. 35 per cent, that accounts for a minimum drop of Rs 6,500 on small cars and about 24,000 on sedans. Maruti has reduced the price of Alto by around Rs 8,000, A-Star by around Rs 16,664 and SX4 sedan by around Rs 24,000. Hyundai dropped car prices by about Rs 44,792 on its top-end sedan, Sonata. The prices of Hyundai i10 have been reduced by about Rs 18,381. Now, the variants of i10 will be available at a price of Rs 3.26 lakh and Rs 5.25 lakh. Toyota Kirloskar Motors has also reduced car prices by about Rs 32,780 on the Innova and Rs 40,750 on the New Corolla Altis. Even the prices of imported cars by Toyota, Toyota Prado and Toyota Camry, have been reduced by Rs 76,130 and Rs 1.21 lakh, respectively.
 
 
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