Home >Companies >Maruti hikes prices by up to Rs34,494 to offset infra cess
Photo: Ramesh Pathania/Mint
Photo: Ramesh Pathania/Mint

Maruti hikes prices by up to Rs34,494 to offset infra cess

Ciaz SHVS and Ertiga SHVS are exempt from the infrastructure cess and so, there is no change in the prices of these models

New Delhi: The country’s largest carmaker Maruti Suzuki India on Thursday hiked prices of its vehicles across models by up to Rs34,494 in order to offset the impact of infrastructure cess proposed in the Union Budget 2016-17.

“Following the infrastructure cess on automobiles in the Union Budget 2016-17... prices of its models would go up in the range of Rs1,441 to Rs34,494 across its models," Maruti Suzuki India (MSI) said in a statement.

Ciaz SHVS and Ertiga SHVS are exempt from the infrastructure cess and so, there is no change in the prices of these models, it added.

The company currently sells a range a vehicles starting from entry-level car Alto 800 to premium crossover S-Cross, priced between Rs2.54 lakh and Rs11.69 lakh (ex-showroom Delhi).

Yesterday, German luxury carmaker Mercedes-Benz announced its plan to raise prices of its entire product portfolio by up to Rs5 lakh from 15 March. Already, Tata Motors hiked the prices of its passenger vehicles in the range of Rs2,000 and Rs35,000 while Hyundai Motor India and Honda Cars India have also stated their intention to hike prices in the range of Rs3,000 to Rs80,000 on their respective product portfolios.

The government has decided to impose 2.5% cess on diesel vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,500 cc while higher engine capacity and SUVs and bigger sedans were slapped with a cess of 4% on the value of the car. These are over and above a cess of 1% on petrol/ LPG/CNG driven vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,200 cc.

Finance minister Arun Jaitley also proposed “to collect tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs10 lakh.

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