Government has decided to increase the central excise duty from 2 percent to 10 percent. Tata Motors has announced that it will hike its car prices following the announcement from the government. "Following the excise duty hike by the Finance Minister in the budget, we may hike prices by up to Rs 60,000 to Rs 70,000 for heavy vehicles and Rs 5,000-Rs 6,000 for smaller vehicles," said P M Telang, Tata Motors Managing Director, India Operations. However, he did not divulge the details of quantum of increase in prices of various models.
Other car makers of India also announced that they may hike prices of its models up to Rs. 25,000. Maruti Suzuki India Limited stated that its car prices may go expensive by at least by two percent and Hyundai Motor India Limited may also increase its car prices in the range of Rs. 6,500 to Rs. 25,000. Volvo Auto India also announced that its models will be pricier following the excise duty announcement from the government. Price hikes on various models from different auto makers will depend on several factors like commodity prices required to manufacture cars.
