Mumbai: Hyundai Motors, the second largest car manufacturer in India and Honda Cars, manufacturer of premium cars announced an increase in its vehicle price following the levy of infrastructure cess announced in the Union Budget.
While Hyundai has increased prices in the range of Rs 2,889 to Rs 82,906 depending on the model, Honda has raised its vehicle prices by Rs 4,000 – Rs 79,000.
“The new levies in Union Budget 2016 have led to price increase across the models ranging from Rs 2,889 to Rs 82,906. Today’s customers are discerning on net off value offerings.
The change in price value equations could alter the overall demand, from within the segment to across the segments and fuel types,” said Rakesh Srivastava, senior vice-president, sales and marketing, Hyundai Motors. The budget has levied an infrastructure cess of 1 per cent on small petrol, LPG and CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other high engine capacity vehicles and SUV’s.
Earlier, while announcing a 3-5 per cent increase in vehicle price across its models, Mercedes-Benz said, “The imposition of an infrastructural cess as well as an additional ‘luxury tax’ announced in the Budget, has negatively impacted the prices. In addition, a weakening currency coupled with rising input costs has been exerting pressure.”
In addition, Mahindra & Mahindra announced an increase in prices of its passenger vehicles by Rs 5,500 to Rs 47,000, effective April 1.
