Vehicles To Become Costlier From The Next Year

The new year will bring a bad news for those planning to buy a new vehicle. The central government has decided against reducing the excise duty rates, making cars, SUVs and two-wheelers more expensive from January 1, 2015.

“The government is not extending the excise duty concessions on the auto sector,” a senior finance ministry official said. The Centre had reduced excise duty to 24% from 30% for SUVs, 20% from 24% for mid-sized cars and 24% from 27% for large cars.

The auto industry grew by 10.01% in April-November after two successive years of slide. Although the auto industry had sought extension of relief on excise duty, the government has decided not to do so.

Maruti Suzuki India Chairman RC Bhargava said, “The government has to take these decisions, considering all aspects of the economy. It could have a short-term impact on automobile sales but the government has to take into account the health of the entire economy.”