Car prices expected to rise from April 1, 2014

Tuesday 25 March 2014, 16:27 PM by

Relief from excise duty seems to be short lived in the country. As per a recent update, car-makers in the country have decided to pass on the higher operational costs to the buyer segment in the country. Some of the top selling brands in the country like Tata motors, Honda Cars, Mahindra and Mahindra, and few others may hike the prices of vehicles across different segments from their respective production line.

Pravin Shah, Mahindra & Mahindra chief executive for Automotive division, said, “We are actively contemplating increasing the prices of our vehicles in April because of the increase in input and operational costs. We have not yet taken a final decision on the amount and timing, but this is a matter we are seriously considering right now. It will happen for sure in April.” The Indian car-maker has not revealed exact figures for exact hike in prices for its cars. It is worth noting that Mahindra and Mahindra had brought down the passenger vehicle prices about a month ago by Rs. 13,000 to Rs. 49,000 post a reduction in excise duty.

Jnaneswar Sen, senior vice-president for marketing and sales at Honda Cars India told FE, “We are deciding the quantum of price increase and are working with our finance and accounts team. It will be effective from April 1”. Along with cars like Amaze sedan, CR-V SUV and Brio hatchback, the price for bestselling City sedan shall also be hiked.

Tata Motors have also mentioned a possibility for price hike next month. As per sources the hike in prices for Tata cars could range anything between 1% to 2%. Post reduction in Excise duty Tata Motors most affordable hatchback, Nano came cheaper by Rs 8,000 and was available for sale at Rs 1.41 lakh. The Indica eV2 is being offered at a starting price of Rs 3.85 lakh post discount of Rs. 15,000. The Indigo eCS compact sedan was offered with a discount of Rs 17,000 and was put up for sale for sale at Rs 4.82 lakh. Rs 20,000 discount was offered by Tata for the Manza sedan thereby offering the basic model of the sedan at Rs 8.07 lakh.

New prices are expected to be revealed by the car-makers in the coming days. For now, car-makers like Maruti Suzuki and Hyundai have not disclosed any possibility for a price hike from their production line.

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