Duty hike sees car prices rise by up to Rs 41,000
Car makers, including Maruti Suzuki, Hyundai and Honda, on Friday, said they will hike prices by up to Rs 41,000 following a 2 per cent increase in excise duty to 10 per cent in the Budget. For higher priced cars, excise has been raised to 22 per cent from 20 per cent.
Maruti Suzuki India said cost of its models will go up between Rs 3,000 and Rs 13,000 more (ex-showroom, Delhi) from tomorrow. Hyundai Motor India also said it will increase prices between Rs 6,500 and Rs 25,000 and Honda Siel Car too said it hike prices by Rs 13,000 to Rs 41,000 with immediate effect.
Prices of two wheelers, 3-wheelers and commercial vehicles, will also go up to some extent because of the 2 per cent increase in excise. Moreover, increase in the prices of petrol and diesel will discourage people to buy cars.
Maruti Suzuki India Chairman R C Bhargava said: “Car prices will go up by about 2 per cent, which is essential to offset the increase in central excise duty announced by the Finance Minister.”
Tata Motors Managing Director P MTelang said: “Consequent to duty hike in the budget, we may hike prices of heavy vehicles (trucks) by Rs 60,000 to Rs 70,000 and prices of cars and SUVs by Rs 5,000 to Rs 6,000.”
General Motors President & Managing Director Karl Sym said “the company will evaulate the impact (of excise duty hike) and revise the price of our vehicles in line with the increase,” while Micahel Boneham, President & Managing Director of Ford India was not forthcoming on the increase in the price of cars but said: “The hike in excise duty on cars by 2 per cent is a major disappointment for the automobile industry.” He wanted the stimulus support to continue.
In the two-wheeler segment, the largest player Hero Honda said it will hike prices by Rs 500-1,500 across all models. TVS Motors said prices of its models will go up between Rs 350-1,200.
Bajaj Auto Managing Director Rajiv Bajaj, however, said his company is not much bothered about the increase in excise rate, adding that it will have to be eventually passed on to the consumers.
