Mumbai: Auto stocks witnessed selling pressure on Wednesday after the government announced ending excise duty concessions for the cars and durable goods.
Mahindra & Mahindra fell by 1.85 percent, Eicher Motors was down 1.63 percent on the BSE.
Shares of Bosch declined by 1.33 percent, Exide Industries (-0.78 percent), Bajaj Auto (-0.66 percent) and Maruti Suzuki India (-0.63 percent).
Prices of cars and durable goods like TV and fridge will go up from Thursday as government plans to end the excise duty concessions given in February, a decision that may help rake in Rs 1,000 crore in the remaining three months of the fiscal.
"The government is not extending the excise duty concessions on the auto sector and consumer durables," a senior finance ministry official had said yesterday.
Excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 percent from 12 percent previously.
For SUVs, it was cut to 24 percent from 30 percent; for mid-sized cars, to 20 percent from 24 percent and to 24 percent for large cars, from 27 percent.
In June, the new government led by Prime Minister Narendra Modi extended the excise duty concessions by 6 months to December 31, which is now not being further extended.
