Increased Road Tax To Hamper Maruti Sales

By By: Vicky.in

Published: Friday, February 4, 2011, 13:31 [IST]

The top most passenger car maker in India, Maruti Suzuki expressed concerns over the increase in road taxes which may block the sales. The tax systems for registration and road have since been revised by many state governments like Tamilnadu, Karntaka and Delhi in the country. The company"s Chief GM said that their will be an adverse effect of increased road taxes on Maruti car sales but he had no level of such decay except that it could not be accounted accurately.

Already the governments of Chandigarh and Haryana have implemented the revised taxation last month and so is the case with Punjab which may effect soon. As per the existing taxation of Rs2500, the Chandigarh government collects 2% on cars at the price range of Rs6 lakh , 3% for cars of Rs6-20 lakhs and 4% on cars with the price of more than Rs20 lakhs. Ind Haryana, it is 2% on cars on Rs5 lakhs, 4% on cars of Rs5-10lakhs, 6% on cars with the pricing more than Rs10 -20 lakhs and 8% on costs more thanRs20 lakhs. Incidentally, these are the most important dearth for Maruti"s sale where it sells 8000 units a month which accounts 9% of its net sales.

Another aspect is the small cars which occupy 75% of the net market and the increase road tax may have a devastating effect on Maruti car sales, he remarked. Already the often increasing fuel price and fluctuating interest costs on loans are also major hitches in smooth sales, he added.

Article Published On: Friday, February 4, 2011, 12:40 [IST]

Read more on: #automobile #maruti suzuki #new car

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