Double whammy for auto buyers, pay more from April
After the Budget triggering off a price increase in different auto models, the industry is set to jack up prices again in April due to the implementation of the new emission norms — Bharat Stage IV.autos Updated: Feb 28, 2010 23:33 IST
After the Budget triggering off a price increase in different auto models, the industry is set to jack up prices again in April due to the implementation of the new emission norms — Bharat Stage IV.
Following a 2-per cent increase in excise duty on all non-oil products to 10 per cent, automobile companies have already announced price hikes of up to Rs 70,000 (see table).
Come April, auto companies will pass on the cost incurred on upgrading to new emission norms of Bharat Stage (BS) IV in 13 cities and BS III in the rest of the country.
“There will be another round of price hike by the industry in April. It is a matter of concern but necessary because of the upgrade due to new emission norms,” said Pawan Goenka, president, automotive sector, Mahindra & Mahindra and the Society of Indian Automobile Manufacturers (SIAM).
SIAM, however, said the 2-per cent rise in excise duty should not have an adverse impact. “The hike in excise duty was expected,” Goenka said.
In the two-wheeler segment, Hero Honda said it will raise prices by Rs 500-1,500 across all models. TVS Motors also announced price increase of Rs 350-1,200.
First Published: Feb 28, 2010 22:11 IST