After the new taxes announced in the Union Budget 2016, carmakers in India have announced to increase prices of their vehicles. While carmakers like Maruti Suzuki, Hyundai and Tata Motors have increased the prices with immediate effect, Mahindra & Mahindra has announced to hike the prices from April 1, 2016.
The new levies have been directly passed on to consumers as these are proportionate to the percentage taxes applied across the vehicle segments.
For people not in the know, the government announced 1 per cent ‘infrastructure cess’ on all small petrol/LPG/CNG cars with engine capacity below 1200cc and 4-metre length. Taxes for sub-4 metre diesel cars with engines below or equivalent to 1500cc will be 2.5 per cent, while higher engine capacity cars attract 4 per cent additional tax. There’s also 1 per cent luxury tax on all the cars above Rs 10 lakh.
Here’s how much all the manufacturers have increased their car prices
Maruti Suzuki India
Ex-showroom prices of Maruti Suzuki cars would go up in the range of Rs 1,441 to Rs 34,494 across its lineup. Since hybrid and electric vehicles have been exempted from the Infrastructure cess, prices of Maruti Ciaz SHVS and Ertiga SHVS remain unchanged.
The South Korean carmaker have announced to increases prices of its entire model range from Rs 2,889 to Rs 82,906. The company believes that change in the price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types.
Ex-showroom prices of Tata Cars have increased between Rs 2,000 – Rs 35,000. And the new taxes have affected the prices of entire passenger vehicle range of Tata Motors.
Mahindra & Mahindra
The country’s largest SUV maker Mahindra & Mahindra has announced to increase the prices of its vehicles by Rs 5,500 to Rs 47,000 depending upon the vehicle. The new prices will come into effect from April 2016 onwards.
Mercedes-Benz has decided to increase the price across its model range from March 15, 2016 onwards. The range of price increase will be from 3 to 5 per cent.
Honda Cars India
Honda Cars India hiked the prices of all of its models in the range of Rs 4,000 to Rs 79,000. Since the updated Amaze was launched on 3rd March, the ex-showroom price of the sub-compact sedan includes the cess tax as well.