The 2016 Union Budget has been received by the auto industry with mixed reactions. Most have expressed positive sentiments at the major push that infrastructure has received. However, there has been disappointment expressed at the infrastructure cess that has been added to the price of the vehicles.
The Centre had announced that there would be an additional 1 per cent cess on small petrol car, LPG and CNG cars. The small diesel cars will have to pay 2.5 per cent cess, while the large cars will attract 4 per cent cess. In addition to these the government has also imposed 1 per cent tax collected at source on cars worth more than Rs 10 lakh.
The instant result of this additional duty is a price hike across the industry which has been initiated by various manufacturers. Here are some of prices hikes by various manufacturers.
Tata Motors
Tata Motors has announced an increase in passenger vehicle prices by up to Rs 35,000 with immediate effect.
Hyundai
Hyundai has announced a price increase across all its models with effect from March 01. This hike is in the range of Rs 2,889 to Rs. 82,906 depending on the model. The lowest hike is for Eon whose price has been hiked by Rs 2889 while the Elite i20 and Creta which do volumes for them have got hikes of Rs 4886 and Rs 27,192 respectively.
Maruti Suzuki
The company has announced that the ex-showroom prices of its models will go up in the range of Rs 1441 to Rs 34,494 depending on the model. The Ciaz SHVS and Ertiga SHVS have been exempted from this hike as they are hybrid models.
Honda
Honda has announced a price hike with effect from March 1. It is in the range of Rs 4000 to Rs 79,000. The Brio hatchback, which is their entry level model, gets a hike in the range of Rs 4000 to Rs 6000 while their main volume model the City gets a price hike in the range of Rs 24,000 to Rs 38,100.
Mercedes-Benz
Mercedes-Benz India has announced an upward revision of the price of its entire model range effective from March 15. The price increase would be between 3 per cent and 5 per cent depending on the model.
While these are some of the first players in the market to react to the changing scenario, we expect that everyone else will follow suit and impose hikes of similar nature on the prices of their vehicles across the range.
