Tata Motors concerned over possible excise cut on two-wheelers "alone"

July 6th, 2008 at 10:21 am -

Tata Motors concerned over possible excise cut on two-wheelers "alone"

New Delhi, 13 Feb 2008: If the Budget 2008 cuts two-wheeler excise duties, it would yield Tata Motors rattling unhappy.

According to sources in the machine industry, it is apprehended that some advise by the direction ministry to modify the excise obligation “only for two-wheelers” could be seen by the consort as a give-in to the “two-wheeler lobby” to modify it from the Nano impact. “It would modify the rules of the mettlesome unfairly against the Nano,” said a grownup business source.

When contacted, the consort representative said, “Tata Motors would not same to attain some comments on this.” However, it is learnt that the consort is afraid most how the two-wheeler upgrades module effect for the Nano if prices of motorcycles, scooters and mopeds embellish cheaper by Rs 3,000-7,000. Tata Motors haw “raise their lawful concerns at the correct fora” should “only” two-wheelers intend an excise relief.

At around Rs 1 lakh, Nano is positioned as the automobile closest to the two-wheeler mart and Tata Motors Chairman Ratan Tata had declared at the start of the automobile that the causing for the Nano send was the ordinary range of whole families including children travelling on two-wheelers.

The direction ministry is apprehended to be consideration the income implications of an excise obligation cut. Currently, both two-wheelers and diminutive cars draw 16% excise duty. The two-wheeler mart has had dull ontogeny for more than a assemblage now.

Auto business embody SIAM, in its pre-Budget memorandum, has suggested, for the ordinal assemblage in row, that two-wheeler excise duties should become downbound to 8%. Sources in the ministry, however, feature there is ease no defined selection on benefits for the two-wheeler business in this Budget.

Auto analysts hit been separated on the effect that the Nano, cod for a conventional advertizement roll-out in Oct this year, module hit on the two-wheeler market. While digit country feels the distance and the meeter outlay of maintaining a automobile module place the Nano unwaveringly in the entry-level automobile mart which is no danger to the two-wheeler industry, others see that obligation could agitate to the Nano instead of agitated up the two-wheeler continuance chain.

The automobile business has been rigorous that coverall excise duties should become downbound with diminutive cars effort a figuring over and above that. Currently, cars above 4 cadence size and with engines large than 1.2 litre petrol and 1.5 litre diesel draw 24% excise duty.