(Image source from: Excise Benefits: Now pay less on your favorite cars})

Finally, here comes some good news for the auto freaks! Auto giants like General Motors India and Tata Motors have announced a drop in their rates. The announcement came soon after Finance Minister P. Chidambaram slashed excise on automobiles in the interim budget 2014-15 announced yesterday.

"We will pass on the excise duty relief to the consumers and are currently studying the fine print to determine the exact amount across the car lines," General Motors India vice-president P. Balendran revealed.

Deeming the cut on excise duty on SUVs, small cars and large diesel vehicles an encouraging and a welcome step, he said that  news, the new government should be willing to endorse it as well.

A Tata Motors spokeswoman said: "We will definitely pass on the benefits of these excise reductions to the consumers for our new dispatches from tomorrow (as applicable) and are working on the details of the exact reductions."

She added that the various cuts in prices across categories is a positive step for the auto sector and will make vehicles more easily affordable for the middle class.

Excise duty on small cars, scooters, motorcycles and commercial vehicles will be reduced from  8% from 12%. The excise duties on SUVs will come down to 24% as against 30% earlier,  24% as against 27% earlier on larger cars and  20% from 24% for mid-sized cars. The slash in car prices will be available until June 20, 2014.

Market leaders like Maruti Suzuki India and Hyundai Motor India Ltd. has welcomed the decision as a much needed initiative and a breather

"This duty cut will make cars more affordable since the benefit will be passed on to the consumers immediately," managing director and CEO B.S. Seo (HMIL) said.

Annual car sales in India had hit the lowest in 11 years in 2013, recording a 9.59 per cent low, as the auto industry continues to reel under a demand slump, blame it on economic slowdown.

AW: Suchorita Choudhury