Automobile companies have begun raising prices after the Government decided not to extend excise duty concessions that expired on December 31.
The price hike is also to offset the rising input costs.
The country’s largest carmaker, Maruti Suzuki India, has increased prices across all models, ranging from ₹7,850 to ₹31,600, effective January 1.
The price of Alto has been raised by ₹8,500; Ciaz between ₹22,450 and ₹31,600; and Omni between ₹7,850 and ₹9,950.
Hyundai Motor India has also hiked priced across all its 10 models, starting from Eon.
The rise ranges from ₹15,000 to ₹1.27 lakh and is effective January 1.
“In these adverse market conditions, the price increase is necessitated on account of the higher excise duty and increased input cost,” said Hyundai Senior Vice-President (Sales and Marketing) Rakesh Srivastava.
On its part, Tata Motors is also looking at increasing prices.
“We will pass on the increase in excise, and there would be a related price impact to the extent of the duty increase,” a company spokesperson said.
Industry analysts said most other companies would announce price hikes this week itself.
Mahindra & Mahindra is yet to announce price hikes.
The automobile industry has said the excise duty rollback will hurt January sales as prices are expected to go up 4 per cent.
“It will certainly impact January sales. But over time, people will get used to it,” Maruti Suzuki India Chairman RC Bhargava said in December.