New Delhi: Two Indian tyremakers said they will reduce prices by 2%, passing on the excise duty cut announced by the finance minister on Tuesday.
Government cut the excise duty on a range of products to 8% from 10%, to help stimulate demand and shore up the flagging economy.
Apollo Tyres Ltd said it will reduce prices by 2%, following cuts in factory gate taxes by the government on Tuesday.
The new prices will be effective midnight of 25 February, the firm said in a statement.
Ceat Ltd will cut prices of truck tyres effective immediately, its third reduction in three months, it said in a press release.
Shares in Apollo Tyres fell 1.5% to Rs16 while Ceat fell 1.6% to Rs33.65 in a weak market.