Car manufacturers enjoyed a good share of pie when the government announced the 4 per cent cut in CENVAT in December 2008. But despite the reduction in the excise duty, many car manufacturers like Hyundai Motors and Maruti Suzuki increased the prices for its models blaming the rising input costs. Following them, even other car companies like Honda is also likely to hike its car prices of all the models.
During the announcement of the excise cut, the revenue department supposedly highlighted the purpose of the reduction that was solely done to benefit car buyers. Initially, the prices were slashed but the car companies in the veil of high input cost hiked the prices again beating the purpose of the cut ordered by the government. Eyeing all this, the government is now in talk with the car companies asking them to pass on the complete benefit of 4 per cent cut in CENVAT to the consumers. It is disappointing that the car manufacturers took away the benefits that were totally entitled for the consumers.
I am glad to hear that the government has raised its voice for consumers right. Under the veil of increase input cost and other factors, the car manufacturers have always hiked the price for cars. Despite receiving the benefit from the government, the greed of the car makers has not come down.