The Indian government will continue with the current excise tax cut beyond December.
Anant Geete, minister for heavy industries, told ET Auto.com: “I think the industry needs support thus the excise duty cut will continue beyond December and shall be extended at least till March 2015.”
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The cut had already been extended six months to 31 December and the latest extension would be a a major relief to the automobile sectors, the report said.
Factory gate duty on small cars, scooters, motorcycles and commercial vehicles is therefore pegged at 8% from 12%, SUVs are levied 24% (from 30%) large cars 24% (27%) and mid-size cars 20% (24%).
“This is really an assurance from government that will help the industry to grow,” said Hyundai Motor India sales and marketing head Rakesh Srivastava.
ET Auto noted car sales grew more than 15% in August, the fastest pace so far this fiscal year.
