Mahindra and Mahindra would be hiking the price of all their models sold in the country. The Indian automobile giant will be passing on the Infrastructure Cess to its customers, just like other manufacturers are doing. Infrastructure Cess was announced in the recent 2016-2017 Union Budget.
The Indian automobile giant has decided to hike ex-showroom pricing up to Rs. 47,000. Mahindra is expected to increase the pricing of all new models with immediate effect. All models booked before April 1, 2016 can be availed without an increase in pricing.
Currently, Mahindra has an extensive product range on offer in the country. It consists of the KUV1OO, Verito Vibe, Quanto, TUV3OO, Xylo, Scorpio, Thar, Bolero, and XUV5OO models. Maximum price hike is most likely to be witnessed by the XUV5OO model in the Indian market.
Luckily, Mahindra's e2o electric vehicle will not witness a price hike. The hybrid and electric vehicles have been exempted from these new taxes. A luxury tax is applicable on vehicles that cost more than Rs. 10 lakh in the country.
Several other manufacturer's have also increased the pricing of their models. Mercedes-Benz, Nissan, Maruti Suzuki, Honda, and Hyundai have passed on the Infrastructure Cess on to its customers. They have also cited the increase in input costs as a reason for the increase in pricing.