Rahul Bajaj, chairman, Bajaj Auto, today said the excise duty on two-wheelers and three-wheelers should be brought down to 8%.
Bajaj was speaking at the post-budget meeting of industry associations today with Finance Minister P Chidambaram.
The duty for two-wheelers and small cars has been brought down to 12% in the budget proposals - a move, two- wheeler manufacturers feel, would lead to unfair competition.
"Two-wheelers are used by the real aam aadmi (common man)," Pawan Munjal, managing director, Hero Honda, said at the conference while making a case for lower excise duty on two-wheelers.
Assuring the industry that he would keep a close watch on developments in the auto sector, Chidambaram said he had kept the duties at the same level for auto and small cars "as they enjoyed the same duty in the last two-three years."
Fearing competition from Tata Motors' Rs 1 lakh car Nano, which was unveiled at the auto show in January, two-wheeler makers want excise duty on motorcyles and scooters to be lower than the levy on small cars.
Tata Motors is planning to launch its Rs 1 lakh car in October, which will now attract excise duty of 12% - the same as for two-wheelers and three-wheelers.
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