At the time, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, “The first month of 2014 did not witness any improvement in the overall industry performance and the situation remains subdued. The recent Repo Rate hike will in coming months escalate the rate of interest on car loans impacting consumer sentiment. We hope the upcoming Auto Expo which will showcase new products and technology, will provide a trigger in giving a much needed boost to the auto industry and overall sentiment.”
As a result of Interim Budget 2014-15 announcements this Monday, under Chapter 84 and Chapter 85 excise duty reduction on vehicles stands as follows. From 12% to 10% and on Vehicles – CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively. Automakers are now being able to pass on price cut benefits to buyers in strengthening buyer sentiment.
Mahindra price reduction ranges from Rs 13,000 to Rs 49,000 for passenger vehicles with immediate effect. Rexton premium SUV price is being lowered by up to Rs 92,000.
Commenting on price reduction, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, “We are delighted at the Interim Budget announcements which have been taken to boost the automotive industry. We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry. The prices of our range of commercial vehicles are also being reduced.”