Agreeing to pass on the cenvat rate cut to the consumers, India's largest two-wheeler maker Hero Honda, Pune-based Bajaj Auto and Japanese car making giant Honda Siel Cars today cut prices of their vehicles.
While the reduction among Hero Honda products — motorcycles and scooters — will be in the range of Rs 1,000-2,000, Bajaj Auto, India's second biggest two-wheeler maker has announced a cut of Rs 2,100-4,400.
"Bajaj Auto has passed on the benefit of the excise reduction in cenvat rate to its customers. The company has announced price reduction ranging up to Rs 2,100 and Rs 4,400 ex-showroom on its range of 2-wheelers and 3- wheelers respectively," stated a statement from the company.
Meanwhile, Honda Siel Cars India (HSCI) has cut prices of City, Civic and Accord models by Rs 19,000-31,000 also with immediate effect. Now, the entry-level Honda City will carry a price tag of Rs 7.51 lakh as against Rs 7.70 lakh earlier. The Civic will be available at Rs 11.87 lakh compared to Rs 12.16 lakh earlier, while the Accord will be priced at Rs 16.72 lakh as against its regular price of Rs 16.99 lakh. All prices are ex-showroom Delhi.
HSCI President and CEO Takedagawa said, "We welcome this move by the government. The reduction in duty will give the necessary boost to consumer demand and fuel growth in the Indian economy. We feel it will also arrest the negative growth in the automobile sector."
Meanwhile, Bajaj Auto has also promised to look into the issue of dealer inventory. "The company is in touch with dealers to understand and resolve the implications for dealer inventory," said Kevin D'Sa, vice-president (finance), Bajaj Auto in a statement. HSCI, however, has said that it will hike prices of the CRV sports utility vehicle by Rs 1 lakh with effect from the first week of January. The hike will be a result of high cost of imports due to the weakening rupee against the dollar and the yen.
Hindustan Motors will also pass on the rate cut benefit to the customer by reducing the price of the Ambassador by Rs 10,000-14,000 with immediate effect.