Tata Motors has hiked the prices of its passenger vehicles by upto Rs. 35,000/- with immediate effect, after the new budget proposal. The increase in passenger vehicles vary from Rs. 2,000/- to Rs. 35,000/-.
According to the new budget, the government will impose a cess of 2.5 percent on diesel vehicles that come under the sub-4 metre category and engine capacity not exceeding 1,500cc. Higher capacity vehicles will attract a tax of 4 percent.
Tata Motors is not the only carmaker affected by the tax hike, since Hyundai is also considering a price hike ranging from Rs. 3,000/- to Rs. 80,000/-. Honda Cars India too, is planning on hiking prices from Rs. 4,000/- to Rs. 80,000/-.