Motorcycle and car prices are likely to increase as the excise duty cut announced by previous finance minister P Chidambaram at the interim Budget before the general elections will be expiring on July. There is a high chance that the new BJP-led government would revert to the pre-election duty structure with 4% and 6% higher duty on motorcycles and cars respectively.
While the next budget is expected to be in the early part of July, the previous duty increase would be brought back if the government does not bring out a notification before June 30. The automobile industry faces worry once again after the reduction in duty was set to give boost to vehicle sales prior to the formation of the new government had seen car sales declining to 6.69 per cent. This was the first time since car sales declined in the last one decade with last negative sales recorded back in 2002. With the duty back to normal, it would bring back the worries of the automobile industry as it still struggles to get back on track with the sales.
Economic Times reported a recent meet between the Society of Indian Automobiles Manufacturers – SIAM and the commerce ministry, requesting a notification to extend the current excise duty structure, but havent got any response from the government yet as Commerce Minister Nirmala Sitharaman is yet to respond to their request.