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How Much Will A New Car Cost After Budget?
The car industry which struggled for most part of last year due to reduced sales and low market sentiment was hoping the new year would be different. The industry has already hikes prices due to increased manufacturing costs and it is in no position to take in any increase now. The person who will suffer from this is the car buyer who will now have to shell out about Rs.4,000 to 70,000 more for a car.
Carmakers were quick to respond to the increased excise tax. India's leading carmaker Maruti Suzuki has announced it will increase prices soon. It has not specified the extend of the price hike. The company's managing executive officer Mayank Pareek said the company was assessing the extent of price hike required for each Maruti Suzuki Car.
Mahindra will also increase its car prices by 2 to 3 per cent. Speaking to reporters after the budget, Mahindra & Mahindra President (Automotive and Farm Equipment Sector) Pawan Goenka said: “Given the current economic scenario and the revenue deficit of the country, the hike in excise duty was fully anticipated. Although the industry will not cheer about this, but we have to live with it.”
The car buyers seems to be the biggest loser after the budget with Honda Sile also deciding to pass the entire increase in taxes to the buyer. Honda Siel Cars India Senior Vice President (Sales and Marketing) Jnaneswar Sen has said prices of all locally made cars will be increased. The Brio's price can be increased by about Rs.7,000 while the Accord could see its price shoot by Rs.70,000.
General Motors is also in no mood to take in some of the hike in taxes with company Vice President P Balendran stating: “The entire hike will be passed to the buyers.”
We expect more price hike announcements by other carmakers either by end of today or by tomorrow.
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