Cars, two-wheelers prices set to fall after Chidambaram cuts duty
Price of cars and two-wheelers are set to come down after Finance Minister P Chidambaram announced a reduction in excise duty on small cars, motorcycles and scooters from 12 per cent 8 per cent. The cut in duty will be applicable up to June 20, 2014, when the new government is likely to present the full year budget.
India's auto sector is facing unprecedented slowdown and car sales fell 5 per cent in 2013.
Mr Chidambaram also brought down excise duty on mid and large segment cars to 20 per cent, while duty on Sports Utility Vehicles or SUVs have been brought down to 24 per cent from 30 per cent.
Mr Chidambaram has also cut duty on consumer durables.
Auto stocks traded 0.7 per cent higher, outperforming the broader markets that traded 0.2 per cent up.