Budget effect: Toyota, Honda slash prices

With peak customs duty down five notches to 15 per cent in Budget 2005, automobile companies Toyota and Honda on Tuesday announced major pri...

With peak customs duty down five notches to 15 per cent in Budget 2005, automobile companies Toyota and Honda on Tuesday announced major price cuts.

Toyota has cut prices of its luxury sedan Corolla by around Rs 32,000 and of Innova by Rs 14,000. The Corolla will now be prices between Rs 9.73 lakh and Rs 11.76 lakh ex-showroom in Delhi.

Toyota Innova’s petrol version will now cost Rs 6.69 lakh to Rs 9.31 lakh on the road in Delhi,

A. Toyoshima, MD, Toyota Kirloskar Motors (TKM) said, ‘‘We have studied the impact of the customs duty cut announced by the finance minister yesterday. We are happy to pass om the benefit of the reduction to our customers.’’ Honda, too, has reduced prices for its popular City and Accord models following the customs duty cut announced in the Budget.

While the City would cost between Rs 6.49 lakh and Rs 7.59 lakh ex-showroom in Delhi, the various accord models would ship for Rs 14.71 lakh for the manual version and Rs 15.42 for the automatic variant. Honda Accord V6, automatic, would now cost Rs 16,99,001.

‘‘The 5 per cent cut in peak customs duty is a welcome move. We are extremely pleased to pass the benefit of the duty cut to our customers,’’ said Honda Siel India Ltd (HSCIL) president and CEO H. Yamada.