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    Maruti to Increase Prices in Maharashtra

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    CarWale Team

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    Maruti to Increase Prices in Maharashtra

    The Maharashtra state government has announced a 2-4 per cent increase in taxes for both petrol and diesel vehicles sold in the state and the market leader, Maruti Suzuki, intends to pass on that increase to the customer as soon as possible. This is in addition to the 2 per cent excise hike announced by the central government in the new budget, which meant increases in prices of up to Rs 17,000.

    Maharashtra is one of the more important states for the car maker, with Mumbai alone contributing to 7-8 per cent of sales, and the rest of the state pitching in with another 6-7 per cent. This move from the Maharashtra government will put it near the top of the list of states with tax add-ons to car prices. Karnataka, for example, has 15-20 per cent added to the car's price.

    With the latest blow from the state government, Maruti has revised its annual growth target for the industry to a startlingly low 3.5 per cent - but it also seems more optimistic about the following fiscal, with a growth projection of 7-10 per cent. However, only time will tell if that prediction will come true.

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