Car prices rise by 4-6% in India owing to withdrawal of excise duty concessions

Wednesday 07 January 2015, 08:00 AM by

The year 2015 has begun with rise in car prices in India by about 4-6% owing to withdrawal of excise duty concessions on 31st December, 2014. The prices of cars and SUV's have risen by about 5-6% effective from 1st January, 2015. Car buyers can expect a minimum hike of about Rs. 15,000 to as much as Rs. 1,30,000. Moreover, factors like road tax and value added tax can indeed make the hike much bigger than the actual excise duty hike.

Car prices rise by 4-6% in India owing to withdrawal of excise duty concessions | CarTrade.com
Car prices rise by 4-6% in India owing to withdrawal of excise duty concessions

Leading carmakers like Hyundai, General Motors, Toyota Kirloskar, Honda Cars and Tata Motors have already passed on the increase prices to customers, whereas companies like Mahindra and Mahindra, Nissan and Maruti Suzuki shall do the needful this week. Speaking more on the occasion, P Balendran, Vice President, GM India said, “The price hike on Chevrolet vehicles built in India ranges from approximately Rs 15,000 to Rs 61,000 depending upon the various models and variants with effect from January 2015. The overall revision includes both the price increases on account of cost pressure and excise duty withdrawal by government which has been passed on to the consumer.”

Speaking more on the occasion, Tata Motors spokesperson said, “We will pass on the increase in excise, and there would be a related price impact to the extent of the excise increase.” On behalf of Nissan India, spokesperson said, “We are calculating the quantum of hike to be passed on.” Commenting further, a Maruti Suzuki spokesperson said, “Only the new cars bought from January 1 onwards are charged with higher excise duty. The older ones still carry the old rates. We are yet to be intimated by Maruti about the new rates but we are expecting it to happen this week.”

Source: BS

Follow Nikhil Puthran on
Ad
Popular Cars
Upcoming Cars
Ad