Budget fallout: After Tata and Hyundai, Maruti Suzuki hikes car prices by up to Rs 34,494
The price of Tata cars were increased by up to Rs 35,000 and Hyundai cars will now cost up to Rs 80,000 more after the government announced new taxes on cars.
Car prices in the country have been hiked by more than Rs 30,000 by several manufacturers following policy changes announced by Finance Minister Arun Jaitley in the Union Budget 2016 on February 29. NDTV reported that Maruti Suzuki on Thursday announced that the ex-showroom prices of its models would rise by up to Rs 34,494.
The car maker said the hike will be implemented across all models, except Smart Hybrid Models, which are exempt from the government's infrastructure cess because of the newly introduced Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme.
On Tuesday, a day after the Union Budget was presented, Tata Motors increased its car prices by up to Rs 35,000 across its complete range. Hyundai followed suit and announced new car prices in accordance with the reviewed tax structure on Wednesday. The Korean car maker has increased prices of its cars by up to Rs 80,000.
The latest Budget has levied several additional taxes on cars and SUVs in the country. While vehicles that cost more than Rs 10 lakh will include a cess of 1%, high capacity engine cars and SUVs will come with an added cess of 4%. An infrastructure cess of 1% will be levied on small petrol and CNG cars of length not exceeding 4 metres and engine capacity not exceeding 1,200 cc. Diesel vehicles less than 4 metres long with an engine capacity of under 1,500 cc will come with a cess of 2.5%. SUVs and sedans with higher engine capacity will come with a cess of 4%.