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Tatas decide against uniformly passing on tax cut on cars
New Delhi, Mar 17: Tata Engineering, India`s third largest carmaker, has decided against uniformly passing on the benefit of the excise duty reduction made in the Union Budget 2003-04 to its customers, sources said.
New Delhi, Mar 17: Tata Engineering, India's third largest carmaker, has decided against uniformly passing on the benefit of the excise duty reduction made in the Union Budget 2003-04 to its customers, sources said.
While excise duty on passenger vehicles was lowered by eight per cent to 24 per cent in the Budget, the company has reduced prices of its petrol cars by about five per cent.
But, for diesel cars, which comprise majority of its sales, about 3.5 per cent benefit has been passed on to the customers, sources said.
Prices of diesel variants of the compact car 'Indica' has been cut by Rs 11,000-14,000 (about 3.4 per cent), but for the petrol models, prices have been slashed by Rs 16,400-20,000 (about five per cent) with effect from March 1, 2003.
Similarly, price reduction for diesel models of the recently-launched mid-size car 'Indigo' has been about 3.3 per cent while the petrol variants have witnessed an about five per cent cut.
When contacted, a Tata Engineering spokesperson said "passenger cars are being cleared (at the Pune factory) as per excise duty reduction in the budget at 24 per cent".
Bureau Report
But, for diesel cars, which comprise majority of its sales, about 3.5 per cent benefit has been passed on to the customers, sources said.
Prices of diesel variants of the compact car 'Indica' has been cut by Rs 11,000-14,000 (about 3.4 per cent), but for the petrol models, prices have been slashed by Rs 16,400-20,000 (about five per cent) with effect from March 1, 2003.
Similarly, price reduction for diesel models of the recently-launched mid-size car 'Indigo' has been about 3.3 per cent while the petrol variants have witnessed an about five per cent cut.
When contacted, a Tata Engineering spokesperson said "passenger cars are being cleared (at the Pune factory) as per excise duty reduction in the budget at 24 per cent".
Bureau Report