IAB Report – Hero Motocorp and Honda 2Wheelers announce price cuts
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Following the cut in excise duty by the Union Finance Minister on Monday, automobile manufacturers have begun announcing price cuts to products in their portfolio.
After Audi and Mercedes-Benz yesterday, today is the turn of the two-wheeler manufacturers, with two of India’s biggest OEMs announcing price cuts.
Hero Motocorp, India’s largest two-wheeler manufacturer announced that it would pass on the entire benefit of the excise duty cut to its customers. The maximum reduction the company offers is Rs 4,500, presumably for their most expensive models. Price cuts from the company range between 2 and 5 percent.
Honda Motorcycles and Scooters India, on the other hand, have announced that the company is dropping the price of the 110 cc Dream Neo by around Rs 1,600. The bike is priced between Rs 43,150 and Rs 47,289. The company’s price cut also extends to the top-end CBR 250R that is now Rs 7,600 cheaper. The CBR 250R is priced between Rs 1.58 lakh and Rs 1.93 lakh.
Note that all-prices are Ex-showroom, New Delhi.
TVS Motor Company has also said that it would pass on the benefits from the excise duty cuts to its customers.
On Monday, Finance Minister P Chidambaram surprised the industry by providing a range of excise duty cuts, dropping rates for SUVs from 30 to 24 percent, large cars from 27 to 24 percent, medium sized cars from 24 to 20 percent and small cars, two-wheelers and CVs from 12 to 8 percent.