New Delhi: Hinduja flagship company Ashok Leyland today said it will cut the prices of its trucks by an average of over Rs16,000 per unit on account of the government’s decision to reduce excise duty by 2%.
“In line with the excise duty reduction from 10% to 8% in respect of trucks and auto components, Ashok Leyland will pass on the full benefit to its customers,” the company said in a statement.
“The impact of the duty reduction will work out, on an average, to over Rs16,000 per vehicle,” it added.
The company would pass on the benefit in spite of the fact that the inventory of vehicles had attracted a higher excise duty, the statement said.
Post the 4% reduction in CENVAT last year, CVs attracted a duty of 10%. The latest 2% cut by the government is applicable to only those categories, which attracted a 10% excise duty.
Finance minister Pranab Mukherjee had yesterday announced 2% excise duty cut as part of the interim Budget.
After the announcement, Ashok Leyland managing director R Seshasayee had said the company would pass on the benefit as and when the reduction would be applicable.