Latest Car News in India

Friday, March 16, 2012

By Shilpa Chopra

Small car prices to increase up to Rs 20,000 from tomorrow

Another blow resulted from the Union Budget 2012! The small car prices in India would be hiked from Rs 4000 to Rs 20,000 from next day morning. That means now you have to pay more to get the likes of Hyundai Eon, Honda Brio, Hyundai i20 or Mruti Swift. On the other hand big sized cars in India would be dearer from Rs 35000 to Rs 2 lakh in the country; these cars include Hyundai Verna, Honda City, Toyota Innova, BMW X1 and Audi Q5.

Hyundai Eon Pictures

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It is stated in the budget report that excise duty on every product will be increased which will be bare by the company. This strategy has severely punched on the faces of the car buyers as the manufacturers plan to increase the car prices to meet up the expenses. More taxes has been imposed on bigger vehicles resulting an excise duty to go formulize as, 27 (excise+ad-valorem= 24%+3%= 27%).

Hyundai i20 Pictures

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Luxury cars such as BMW 7 Series and Mercedes S Class would face a hike of approximately Rs 4 lakh depending upon the choice of variant. Imported vehicles with a tag of $ 40,000 will face a hike of 75 per cent which was earlier 60 per cent of the total cost.

Honda Brio Pictures

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Price of hatchbacks and small cars such as Maruti Swift, Alto Hyundai i10 or i20, Tata hatchbacks may surface a price hike of Rs 4,000 to Rs 20,000 as per the variant choice.

Maruti Swift Pictures

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Moderate price hike is seen only on spare parts and small cars. Nevertheless, these price hikes is not welcoming as the fuel price hike is still unsorted. This may lead to overall, rise in cost of transportation facility.

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