Honda Motorcycle & Scooter India (HMSI) and Hero MotoCorp on Tuesday announced a price cut on all its models, after the proclamation of excise duty relief to the automobile industry in Interim Budget 2014-15.
"Honda welcomes excise duty relief given to auto industry in the interim Budget... Honda has decided to pass the full benefit of 4 per cent excise duty reduction on two-wheelers to its valued customers across India with immediate effect," PTI quoted HMSI.
Finance minister P Chidambaram, presenting the budget on Monday said that the excise duty of small cars, motorcycles, scooter and commercial vehicles in India has been cut down to 8 percent from 12 per cent and the excise duty of Sports Utility Vehicles (SUVs) has gone down to 24 per cent from 30 per cent.
With the latest price cut, Honda's Dream Neo 110cc bike, which is currently priced at ₹43,150 and ₹47,289 will come cheaper by ₹1,600. While the company's CBR250R will benefit a reduction of up to₹7,600, Hero's bikes like Karizma ZMR, Impulse, Splendor and Glamour will get a price cut of up to ₹4,500.
"We have decided to pass on the entire benefit of the excise duty cut to our customers. We have judiciously spread out the price cut across our product portfolio ranging from 2 per cent going up to 5 per cent with the maximum reduction being Rs 4, 500," Hero MotoCorp said in a statement.