Hyundai India, the largest car exporter and the second largest car manufacturer in India is currently considering hiking prices across its car portfolio in India. The decision will rest on the government’s ruling on the excise duty extension.
The automaker plans to raise the car prices in response to the expected roll back of the excise duty to the higher duty rate. The carmaker states that at the time when the government reduced the excise duty in the month of February 2014, it had passed on the entire benefit to the customers, absorbing the impact on the stock with dealers.
The reduced excise duty was implemented by the Indian government in the month of February 2014 in order to provide support to the automobile manufacturers in India amid sagging sales and was applicable till June 30, 2014.