The budget 2008 was like a sweet song to many people wishing to own cars. Not only did the budget raise the tax exemption limit from Rs 1 Lakh to 1.5 Lakh, but it also provided excise duty reduction by over 4 percent for cars, two wheelers, and three wheelers. There is also a board excise duty of 14 % for all manufacturing units in the country.

Many popular small car manufacturers like General Motors, Hyundai, Tata, and Maruti Suzuki India, which have a production capacity of over one lakh cars per year, are clearly going to benefit from this policy. The reduced duty applies to cars measuring less than four meters with 1200 cc petrol engines and 1500 cc diesel engines. The people who benefit from these cuts included not only the manufacturers, but also the general customer.

The provisions clearly reduced prices of small cars and Indian car manufacturers like Maruti Suzuki with the highest small car sales in India will benefit greatly from this move this year. In the small car segment, Maruti is currently offering six models: the M800, Alto, WagonR, Zen Estilo, Omni, and Swift.

The prices of Maruti cars have been decreased for each of its models. Price deductions range from Rs 6,500 to Rs 18,000. Hyundai Motors has brought down prices of its popular Santro by nearly Rs 14,000. The i10 sees reduction of Rs 12,000 to 15,000 and the Getz is cheaper by Rs 14,000 - 16000. General Motors has cut rates of its Chevrolet Spark and Chevrolet Aveo U-VA between the ranges of Rs 7500 to Rs 14,000.