As a result of the hike in the tax rates on automobiles in India announced in the Budget 2012-13, the Indian automobile manufacturers will pass the increase in the manufacturing and importing cost of the vehicles to the customers with price hikes across car models. The highest hike in price will be seen by the luxury cars which may become costlier by up to Rs 3,00,000.
Although automakers in India do not support the government’s decision of increasing the excise duty, they are relieved about the non-imposition of the proposed additional duty on diesel powered cars. Commenting about the increase in excise duty, Mr. Shinzo Nakashi Maruti Suzuki India (MSI) Managing Director and CEO stated that the hike would be unfavorable to the automobile sales which are already reeling from the effects of the high interest rates and high fuel prices.
Mr. Suhas Kadlaskar Mercedes Benz India Director (Corporate Affairs and HR) stated that the company will hike the prices across its product portfolio in the range of Rs 2,00,000 to Rs 3,00,000.