Budget 2012: Ford India to hike prices of its cars

Monday 19 March 2012, 01:08 AM by

Ford India is all set to raise the prices of its vehicles following the announcement of the increase in excise duty in budget 2012-13. Michael Boneham, President, Ford India, said “The announcement of a 2 percent increase in excise duty is disappointing and not favourable towards the auto industry.” He also added that the rise in prices of the cars will affect the customer confidence negatively.

Other automobile manufacturers like Maruti Suzuki, Hyundai and Tata Motors are also likely to increase the prices of their cars due to the hike in the excise duty. Luxury car makers such as BMW, Audi and Mercedes will be raising the prices too. Majority of the automobile manufacturers disapproved the government’s decision to increase the excise duty.

Pranab Mukherjee, Finance Minister, announced on Friday that the 22 per cent tax on cars was increased to 24 per cent. However, the cars with 22 per cent tax and an additional Rs. 15,000 would now be taxed at 27 per cent. Announcements were also made that were related to the increase in the import duty of Completely Built Units (CBUs) of big cars priced above 40,000 U.S. Dollars. The taxes on these cars earlier were 60 per cent; however, now 75 per cent will be levied.

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