The effects of infrastructure cess levied on cars is being reflected into the prices of the cars.
The effects of infrastructure cess levied on cars is being reflected into the prices of the cars. Three manufacturers, Maruti, Hyundai, and Honda have already declared price hike in various proportions.
“Following the infrastructure cess on automobiles in the Union Budget 2016-17, prices of its models would go up in the range of Rs 1,441 to Rs 34,494 across its models,” Maruti Suzuki India (MSI) said in a statement adding 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 did not provide individual model wise break up.
“The increase in taxes has come as a big dampener and will further impact demand creating growth challenges especially for SUVs and diesel vehicles. This will necessitate a revisit of business plans”, said Rakesh Srivastava, senior vice-president (marketing & sales), Hyundai Motor India Limited (HMIL). The company has hiked prices from 3,000 to almost 83,000.
Hyundai Motor India Limited
The Hyundai Eon price has been increased by 2889 while the i10 sees an increase of Rs 3848. i10 Grand Xcent see a rise of Rs 4286 and Rs 4726 respectively. Elite i20 price rose by Rs 4886, Active by Rs 5857 and Verna by Rs. 5677. The Creta, Elantra and SantaFe saw massive jumps. Creta is now expensive by INR 27,1922 while the Elantra got dearer by Rs 45044. Lastly, the Santa Fe would see a massive hike of Rs 82,906.
Honda also announced price hike in the range of 4000 to 79,000.
Model Increase in Ex-Showroom Delhi Price across different variants (Rs) Brio 4,000 ~ 6,000 Jazz 5,000 ~ 19,500 Amaze Prices of new Amaze were announced on Mar 3, 2016 City 24,600 – 38,100 Mobilio 21,800 ~ 37,700 CR-V 66,500 ~ 79,000The government decided to impose 2.5 per cent infrastructure cess on diesel vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,500 cc while higher engine capacity and SUVs and bigger sedans were slapped with a cess of 4 per cent on the value of the car.
Related Posts