Friday, March 16, 2012
By Manoj Kumawat
Maruti, Honda, M&M to increase car prices up to Rs 70,000
Oops! This is the much unexpected result from the Budget 2012. The government has increased the excise duty on cars that results in the car prices hike in the country. The mentors would be Maruti cars, Honda Cars and Mahindra and Mahindra cars in India. The price hike will account up to Rs 70,000. With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India will hike prices of their vehicles by up to Rs 70,000.
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The Budget Plan for the rounding year of 2012-2013 has brought bad calls for the respective year for the automobile manufacturers. As planned in the budget, the excise duty on every product will be increased which has led to the increment of vehicle price by Rs 70,000 by Maruti Suzuki, Honda Siel and M&M cars in India.
It has been reportedly declared by Managing Executive Officer (Marketing and Sales) of Maruti Suzuki India, Mr. Mayank Pareek that they are going to increase the prices of all of their products to cover up all the imposed excise duty. However, the correct revelation of the amount is yet not done.
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President of automotive and farm equipment sector, Mahindra & Mahindra, Mr. Pawan Goenka stated in a report that they will elevate the prices every product as the current economic condition and decreasing revenue collection of the country made it well informed for them to expect a price hike somewhere now and then. It is also notably added by Mr. Pawan Goenka that the company will raise the prices of the tractors, which are prime agricultural and domestic tool for the country by Rs 5000 to Rs 6000. He further mentioned that other Mahindra vehicles will see a hike from Rs 3000 to Rs 35000 that includes cars and commercial vehicles.
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Honda Siel Cars India’s senior vice president of sales and marketing, Mr. Jnaneswar Sen reported that prices of mostly all domestic cars will face the deficit . Small cars will face a price hike of approximately Rs 5000 to Rs 6000 whereas luxury cars will have Rs 60,000 to Rs 70,000 price rise.
These financial planning may aggravate the car prices which when combined with the rise in fuel prices may lead to very costly transport expenditure.