The 2012-13 Budget release has brought in an overall dismay in the Indian auto market with the hike in excise duties, where it was hoped that, the excise duties at least remains untouched at the budget proposal. However, this rise was anticipated by the auto industry but relief came in the form no taxes being levied on diesel cars.
The rise in excise duty has left no resort to auto majors such as Honda, Maruti Suzuki and Mahindra & Mahindra, who are making a calculative move of ramping up the prices of their cars by Rs. 70000 approximately. These big players are planning to tag their cars with higher prices and escalate the increased production cost to be borne by their customers.
Mr. Mayank Pareek, Managing Executive Officer (Marketing and Sales), Maruti Suzuki India commented, "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."
The Senior Vice President of Honda Siel cars India, Mr. Jnaneshwar Sen, commented that the rise in prices will pertain only to its cars manufactured locally.
While, Mr. Pawan Goenka, the President (Automotive and Farm Equipment Sector) of M & M said, "Given the current economic scenario and the revenue deficit of the country, the hike in excise duty was fully anticipated. Although the industry will not cheer about this, but we have to live with it."
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