The country's second-largest car maker Hyundai Motor India has asked industry body Society of Indian Automobile Manufacturers to represent the government for removal of confusion on the length of small cars eligible for excise duty sops.
While the finance ministry has kept the length of small car at 4000 mm for excise duty benefits, the Auto Policy by Ministry of Heavy Industries pegs the length at 3,800 mm. Sources said Hyundai wants the definition of the finance ministry to prevail.
Since Hyundai has developed its 'small cars' based on the current definition of 4,000 mm, it could lose out on excise benefit if the length were to be altered to 3,800 mm as per the auto policy.
Its model such as 'Getz' could be falling out of the category, they said. It is also learnt the company was unhappy over SIAM's silence on the issue, especially when no men
tion was made about it in the pre-budget wish-list
of the industry body.
While Hyundai officials declined to comment, SIAM director general Dilip Chenoy confirmed the issue was taken up by Hyundai.
He, however, said in its wish list to the finance ministry SIAM had asked for a uniform excise rate of 16 per cent for all passenger vehicles irrespective of length.
In last year's budget, 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.