Volvo has just increased an issue across its model range. The increase in price comes as a result of the increase in import duty. The prices will be revised for the new stock which is in the pipeline to be custom cleared as the new duty structure increase will not allow the costs to be absorbed. In the budget 2018-19, the Government of India hiked the custom duty on CKD (Completely Knocked Down) from 10 to 15 percent. Furthermore, the custom duty on CBU (Completely Built Up) imports of trucks and buses has been increased from 20 to 25 percent. For this reason, manufacturers are coming up with revised price lists for their product range.
Speaking on the increase in prices, Charles Frump, MD, Volvo Car India shared, “We are planning to hike prices across our range by up to 5% as a direct impact of duty announced at the union budget. The increased duty comes as a surprise and will have a short term impact on the automobile industry. However, we are hopeful with the successful roll-out of GST there will be long term industry stability” He further added, “What I would have liked to see is a much needed incentives for hybrids and plug-in hybrids as these solutions have an immediate impact on environment. Volvo Cars’ vision is aligned with the Indian Governments vision of going full electric but till we get to full electric, the interim is hybrids.”
With the revision in duty structure, multiple automotive manufacturers have revised the prices of their products in India. Not just cars, but this applies to motorcycles as well. While manufacturers like Indian Motorcycle have slashed the prices of its bikes significantly, there are some like Triumph Motorcycles that had to increase the prices of their bikes. Expect more manufacturers to come up with price revision announcements in near future!
