New Delhi: Missed out on a good car bargain the last time? Wait, there is relief yet.
In a stride that could see the price tags of cars coming down, the government is understood to be in discussion with automakers to pass on the entire benefit of the 4% Cenvat cut in December last year, to consumers.
The move comes after some auto majors, including the country’s largest carmaker Maruti Suzuki, Hyundai Motor and Toyota Kirloskar, increased their vehicles’ prices in the last two months citing rise in input costs and devaluation of the rupee in the international market.
“The Department of Heavy Industries has been asked to see that automobile majors pass on the benefit of the duty cut to consumers,” an official source privy to the recent meeting of the Committee of Secretaries said.
Following the excise cut, all vehicle manufacturers had reduced prices, thereby passing on the benefit to consumers.
However, after initially passing on the benefit, some of the carmakers, including Maruti Suzuki, Hyundai Motor and Toyota Kirloskar hiked prices by up to Rs10,000, Rs14,636 and Rs25,000, respectively.
“The Revenue Department has pointed (out) that the government had cut excise duty with an intention that the benefit will be passed on to consumers. However, (the) auto sector has increased the prices,” the official said.