Following the Budget proposal to levy infrastructure cess on automobiles, the country’s car makers are passing on the burden to buyers.
While some like Tata Motors, Hyundai Motor India and Mercedes have already announced price hikes, Maruti Suzuki India, Honda Cars India, and Mahindra & Mahindra said they will be following suit.
The country's largest passenger car maker Maruti Suzuki India on Thursday said the ex-showroom prices of all its models would go up in the range of ₹1,441 to ₹34,494.
“As smart hybrid models (Ciaz SHVS and Ertiga SHVS) are exempt from the infrastructure cess, there is no change in the prices of these models,” the company said in a statement.
Honda Cars India (HCIL) also said it would announce price hike in a day or two, ranging between ₹4,000 and ₹80,000 across all its models.
“We are working on it and it will range between ₹4,000 and ₹80,000. For example, the cess is one per cent in Brio and 2.5 per cent in segments like Jazz and Amaze and four per cent in CRV,” Jnaneswar Sen, Senior Vice President – Marketing & Sales, HCIL, told BusinessLine on the sidelines of a launch.
Pravin Shah, President and Chief Executive (Automotive), Mahindra & Mahindra, added that the company will also increase the wholesale prices of its vehicles ranging between one and four per cent with immediate effect.
The second largest passenger car maker, Hyundai Motor India, had announced an increase in its prices between ₹3,000 and ₹80,000 across models. Tata Motors also had announced an increase in prices by up to ₹38,000.
Luxury car maker Mercedes-Benz India also announced a 5 per cent hike in the prices of its models.
Other companies are expected to announce their price hikes soon.
The Society of Indian Automobile Manufacturers (SIAM) had on Budget day said that an additional one per cent tax to be collected at source on purchase of cars exceeding value of ₹10 lakh will be a deterrent.