Volvo India will soon join the list of carmaker in India to increase car prices in the country. This price revision comes as a result of the increased customs duty that was recently announced at the Union Budget 2018.
Volvo cars will see a price hike of five per cent as decided for CBU models. Other basic customs duty on auto parts, accessories and CKD components vary from 5-10 per cent. Furthermore, the new social welfare surcharge is also at 10 per cent. The entire model range is set to be affected by this increase in import duty and the price difference will be passed on to the customers.
Charles Frump, MD, Volvo Car India said, "We are planning to hike prices across our range by up to five per cent as a direct impact of duty announced at the union budget. The increased duty comes as a surprise and will have a short term impact on the automobile industry. However, we are hopeful with the successful roll-out of GST there will be long term industry stability."
