Friday, March 01, 2013
By Anil Jangid
SUV prices to go up by Rs. 60000!
The Union Budget 2013-14 hasn’t done any good to the Auto Industry. In addition, it is going to make the SUVs costlier putting a pause on the sales of SUVs for an average consumer. This hike in the excise duty will badly affect the prices of best selling SUVs, such as Renault Duster, Mahindra Scorpio, Mahindra XUV 500 and more. Apparently, the prices of these SUVs will go up by about Rs. 60000. The excise duty has been hiked to 30% this time and the dream of buying an SUV has turned in a much dearer one now. Surprisingly, the reason given behind this hike was that SUVs occupy more parking spaces, which is kind of ridiculous as per the auto industry.
If thought upon it practically, increasing the excise duty just because they occupy more space and has higher ground clearance doesn’t make any sense. The import duty on the luxury vehicles which come to India via CBU route have been taken up to by 100%. This means that now if you wish to buy a Porsche 911 or may be a Harley Davidson bike, then be prepared to shed out about Rs. 1.5 lakh to Rs. 1.75 lakh extra.
Increasing the excise duty has pressurized Ford a lot lately. The car maker is on the verge of launching Ford EcoSport Crossover SUV and now it has become very important for the company to keep the price competitive and affordable. Ford EcoSport will be pitted against the successful Renault Duster and if the price strategy isn’t good, then survival for EcoSport will be become more difficult. The car is scheduled to be launched this month and an official announcement for the same will be done very soon. Hopefully, the sluggish market growth and high excise duty doesn’t push the consumers away from car shopping.