Friday, 16 March 2012

Budget 2012-13: Small car prices to increase by Rs 4000 to Rs 20,000 from midnight today



Prices of smaller cars such as Maruti Alto & Swift, Hyundai i10 & i20 and Tata Indica are set to increase between a range of Rs 4,000 to Rs 20,000 depending on the variants from midnight today.

While bigger cars like Honda City or the Toyota Camry as well as the expensive sports utility vehicle like the BMW X1 or the Audi Q5 can go up by about Rs 35,000 to Rs 2 lakh. The government has increased more taxes on bigger vehicles taking the effective excise duty to around 27 (excise+ad-valorem= 24%+3%= 27%)

Expensive executive cars like the BMW 7Series or the Mercedes S Class would see an effective hike of around Rs 4 lakh depending on the variants customers choose to buy.

Car manufacturers, already reeling under the higher interest rates and fuel prices which has risen by almost Rs 14 over the last 12-24 months, saw sales of passenger vehicles grow by a mere 2.95% from April to February this year, after a heady growth of 29% in 2010-12.

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