Auto industry in India is booming and the government now feels to encash upon the same. The Budget has already announced hike in prices of petrol and diesel making driving vehicles expensive in the country. Moreover, a hike in excise duty will further push prices of automobiles making them expensive from April 2010.

Auto manufacturers have already announced hike in prices of their products up to Rs. 70,000 as the excise duty on non-oil products increased from 8 percent to 10 percent. Yet another round of price hike is due from April 2010 when the auto companies will pass on the cost to customers to upgrade their vehicles according to the new emission norms.

"There will be another round of price hike by the industry in April. It is a matter of concern but necessary because of the upgrade due to new emission norms," said Mahindra & Mahindra president for automotive sector Pawan Goenka, who is also the president of Society of Indian Automobile Manufacturers.

Maruti has already hiked the car prices of its models by Rs. 3,000 to Rs. 13,000. Hyundai cars have also gone costlier from Rs 6500 to Rs. 25000. Tata Heavy Vehicles have become expensive by Rs. 60,000 to Rs. 70,000 while prices of Tata passenger vehicles have gone up by Rs. 5000 to Rs. 6000.