| Wednesday, January 17, 2007 |
| The length of a small car under dispute - Hyundai wants SIAM to do more |
The length indeed is a problem, so thinks Hyundai Motor India. The car major has called upon the Society of Indian Automobile Manufacturers (SIAM) to urge the government for removal of confusion on the length of small cars eligible for excise duty incentives.
The Ministry of Finance has stipulated that the length of a small car should be at 4000 mm if it is to avail of excise duty benefits. However, the Auto Policy charted out by the Ministry of Heavy Industries says the length should be 3,800 mm. Hyundai in fact is okay with the stipulation of the Finance Ministry and wants that norm to prevail, said reports.
Significantly, Hyundai's small cars are based on the definition of 4,000 mm and stand to lose out on excise benefit if the length were to be altered to 3,800 mm. The Getz could fall out of the category, if the 3800 mm length is made the norm.
The car manufacturer is also rumoured to be irked that industry organization SIAM has made no mention about the issue in its pre-budget wish-list. Reports said that the matter was taken up by Hyundai . SIAM in the meanwhile says that the wish-list submitted to the finance ministry had sought a uniform excise rate of 16 per cent for all passenger vehicles irrespective of length.
The finance minister had in his last year's budget proposals said that the excise duty on small cars were reduced to 16 per cent from 24 per cent. Small cars were defined as petrol cars with an engine capacity not exceeding 1,200 cc and not exceeding 4,000 mm in length, and diesel cars of engine capacity not exceeding 1,500 cc and not exceeding 4,000 mm in length.Labels: Auto Industry |
| posted by a correspondent @ 10:28 AM |
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