Price hike alert: Hurry up to buy your dream car this month

  • PTI, New Delhi/Mumbai
  • Updated: Mar 05, 2016 10:26 IST
Finance minister Arun Jaitley also proposed to collect tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs 10 lakh. (HT File Photo)

To offset the impact of the infrastructure cess levied and the excise duty hike in Budget 2016-17, auto majors in the country have raised the prices of their cars.

While Mahindra & Mahindra (M&M) hiked the prices of their passenger vehicles by up to Rs 47,000, Hyundai cars would be more expensive by up to Rs 82,906, and Honda cars by up to Rs 79,000, depending on the model.

While some of these price-hikes are effective on bookings from March 1, car-buyers have got respite as the price increase on some models will be effective from April 1.

From April 1, prices of M&M cars will “go up by Rs 5,500 to Rs 47,000, depending on the model and prevailing prices,” M&M chief executive for passenger car business, Praveen Shah said.

However, the price hike will be effective on KUV100 immediately. The petrol model of the mini-SUV will be costlier by 1%, the diesel model will be dearer by 2.5%.

“Though the 1-4% duty hikes are already effective, we have decided to pass on the price increases only from April 1. Prospective customers can still avail of our various passenger cars at the pre-Budget prices all through March,” Shah said.

Hyundai Motor India Ltd (HMIL) also raised prices of its vehicles by up to Rs 82,906 across models, effective from March 1. The hike will be between Rs 2,889 and Rs 82,906 depending on the model.

HMIL senior vice-president (Sales and marketing) Rakesh Srivastava said, “The new levies in Union Budget 2016-17 have led to price increase across the models ranging from Rs 2,889 to Rs 82,906... The change in price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types.”

Hyundai sells a range of vehicles from entry level small car Eon with price starting at Rs 3.20 lakh to luxury SUV Santa Fe tagged at Rs Rs 30.79 lakh (ex-showroom Delhi).

Effective from March 1, Honda has hiked the price of its entry-level car Brio in the range of Rs 4,000 to Rs 6,000, premium hatchback Jazz between Rs 5,000 and Rs 19,500 and mid-sized sedan City from Rs 24,600 to Rs 38,100.

It has also hiked prices of multi-utility vehicle Mobilio in the range of Rs 21,800 to Rs 37,700 and that of its premium SUV CR-V between Rs 66,500 and Rs 79,000, depending upon different variants.

The government has proposed to impose 2.5% cess on sub-four-metre diesel vehicles of engine capacity not exceeding 1,500cc while higher engine capacity and SUVs as well as bigger sedans were slapped with a cess of 4% on the value of the car.

These are over and above a cess of 1% on petrol/LPG/CNG driven vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,200 cc.

Finance minister Arun Jaitley also proposed to collect tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs 10 lakh.

While Mercedes has announced to hike prices by up to Rs 5 lakh from March 15, Tata Motors has raised prices of its passenger vehicles in the range of Rs 2,000 and Rs 35,000.

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