With the increase in excise duty announced in the Budget for 2012-13, Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India intend to increase the prices of their vehicles, reports said.
Maruti Suzuki India Managing Executive Officer (Marketing and Sales) Mayank Pareek said, "We are going to raise the prices of all our products and will pass on the entire additional excise duty. Currently we are working on the exact amount of the hike."
Auto major Mahindra & Mahindra also said it would increase the prices of its entire range of products. President (Automotive and Farm Equipment Sector) Pawan Goenka said, ""The input costs have also gone up in recent times. Considering this, we will raise the prices of our vehicles by two to three percent, translating into an increase of Rs..6,000 to Rs.30,000"
The company will also increase the prices of its tractors by up to Rs.5,000 to Rs.6,000, he said.
Honda Siel Cars India senior vice-president (Sales and Marketing) Jnaneswar Sen said the prices of all locally produced cars will be raised. The company is currently evaluating the quantum of increase. In case of small car Brio, it will be around Rs.7,000, while the same will be Rs.60,000 to Rs. 70,000 for the luxury sedan Accord," Sen said.
General Motors India vice-president P. Balendran too said the company would increase the prices of its all vehicles. However, it has not finalized the quantum of increase yet.
Finance Minister Pranab Mukherjee on Friday announced raising of excise duty to 12 percent from 10 percent at present.
Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24 percent from 22 percent and a fixed duty of Rs.15,000.
Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27 percent, instead of the earlier 22 percent and a fixed duty of Rs.15,000.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org