The leading luxury car makers in the country are planning to hike the prices of their luxury cars assembled in the country as the government has increased tax on locally assembled cars.
The auto majors including Mercedes Benz, BMW, Audi and Land Rover are all set to up the price of their cars in the country by up to Rs 10 lakh in a bid to pass on the increased costs to customer. It is to be mentioned here that the government has recently increased the customs duty on the luxury cars assembled in the country to 30 percent from previous rate of 10 percent.
In a recent statement, Peter Honegg, chief executive officer and managing director, Mercedes Benz India, said, "We are looking at increasing the car price for one of our major models in the next few weeks. We would be paying high tax on one of our cars with a high proportion of pre-assembled components. The new policy regulation has forced us to bring in new prices soon."
The company executives of BMW, Audi and Land Rover have already said that they will increase the price of the luxury cars (priced in the range of Rs 30 to 90 lakh) assembled in the Indian market.
