Car makers to hike rates after excise duty increase1 min read . Updated: 26 Feb 2010, 01:28 PM IST
Car makers to hike rates after excise duty increase
New Delhi: Major auto makers in the country reacted to the government’s decision on 26 February to increase the central excise duty to 10% by saying they will increase car prices -- possibly by up to Rs25,000.
While the country’s largest car maker, Maruti Suzuki India (MSI), said its car will become costly by 2%, Hyundai Motor India said it will result in a price rise of Rs6,500-25,000 on average.
“Car prices will go up by about 2%. This is essential to offset the increase in central excise duty announced by the finance minister today," MSI chairman R C Bhargava said.
The government today increased the central excise duty by 2% to 10%, partially rolling back the cut made earlier.
Meanwhile, a Hyundai Motor spokesperson said: “We will be forced to hike our prices by Rs6,500 to Rs25,000."
Volvo Auto India also said that the increase in excise duty will result in increase of price of its cars.