Wednesday, March 02, 2016
By Kamal Swami
Tata Motors hikes the prices of its entire portfolio
Going through the announcement of imposing of 4 percent additional taxes on SUVs and Cars in Indian car market during the financial year 2016-17 by Union Finance Minister, Honorable Arun Jaitley in budget for next year, domestic car maker Tata Motors has announced to hike the price of its entire range up-to Rs. 35,000 with immediate effect. According to declaration made in budget CESS of 1% will be imposed on vehicles priced above Rs. 10 lakh, whereas additional 4% CESS will be levied on SUV’s and cars with high engine efficiency. Moving ahead additional 1 percent infrastructure CESS tax will be imposed on small and CNG cars with maximum length up-to 4 meter and with capacity not more than 1,200 cc. Similarly CESS of 2.5% will be applied on diesel vehicles with maximum efficiency of 1,500 cc and maximum length up-to 4 meters.
According to reports price hike of Tata Motors will vary from Rs. 2,000 to Rs. 35,000 according to type of vehicle, fuel type, variants and segment. Commenting on the decision of price hike taken by company sources of domestic car maker said,"In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect."
It would be interested to know that after decision of imposing additional 4% CESS on vehicles above Rs. 10 lakh almost every car maker is speculating to hike the prices of their entire range. It is reported that HMIL has announced to hike the prices of its portfolio varying from Rs 3,000 to Rs. 80,000. On the other side one more established car manufacturing company HCIL has said that it is also planning to hike the prices of its vehicles up-to Rs. 80,000.