Two-wheeler manufactures fear NanoTwo-wheeler manufactures fear Nano's impact
Apnaloan.com Research Bureau
04 Mar 2008
In a post-Budget meeting, Hero Honda and Bajaj Auto have requested for a further reduction in excise duty on two-wheelers from 12% as announced earlier to 8%.
The industry fears that Tata's Nano, which was earlier priced at Rs 1 lakh, will now be available at a lower price and hence impact the sales of two-wheelers.
The two-wheeler industry, especially motorcycles has been losing steam since December 2006, which was followed by hike in the interest rates.
In its pre-Budget memorandum, the two-wheeler industry had asked the government to bring down the excise duty on two-wheelers from 16% to 8%.