The government announced the third leg of fiscal stimulus measures to kick start the economy. Service tax has been slashed by 10% across the board. Excise duty on some products has been cut by 2% as well. Car and two wheeler prices will remain unchanged, but truck and home appliance makers will be able to reduce prices, if they decide to pass on the duty cut.
And the first move has come from auto majors Tata Motors and Ashok Leyland. Tata Motors is going to cut the truck prices by 2% post excise cut, says the official, reports CNBC-TV18 quoting NW18. Ashok Leyland is also going to cut the truck prices by average of Rs 16,000.
R Seshasayee, MD of Ashok Leyland said that he is seeing some confidence returning back in CV market. He feels that the public expenditure should have taken precedence over the duty cuts. Duty cuts of 2% may not necessarily help boost the demand significantly, he added.
Ravi Pisharody, VP CV at Tata Motors said that duty cuts will help boost the sentiment to a certain extent. Some revival is seen in the last 2 months, he added.
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