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Amit Sobti, a 29-year-old corporate strategist based in Mumbai, has been planning to upgrade from a Hyundai Santro to a Honda City ever since he got married in October last year. Besides driving to work daily, he will be using the car for long drives for weekend getaways with family and friends.

Amit Sobti (Hemant Mishra/Mint_

Budget impact: Finance minister Pranab Mukherjee raised basic excise duty from 10% to 12%. This means that Sobti will end up shelling out more as automakers will pass on the excise increase to consumers. In 2008, the government had cut excise on small cars to 8% from 12%. In 2010, this was increased to 10%.

Meanwhile, there has been no cut in fuel subsidies. Also big cars—sports utility vehicles and multi-utility vehicles—will attract excise of 24% in FY13 compared with 22% in the current fiscal.

With the finance minister announcing a rise in excise duty to 12%, car prices will surely go up. Now, I will have to rethink on whether or not to buy a bigger car right now. In addition to the rise in car prices, high interest rates is also a reason for me to decide otherwise.

Amit Sobti, Corporate strategist

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M.D. Mallya, Chairman and MD, Bank of Baroda

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Pankaj Mathpal, Managing director, Optima Money Managers Pvt. Ltd

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Anuj Puri, Chairman and country head, Jones Lang LaSalle India

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Arvind Singhal, Chairman, Technopak Advisors Pvt. Ltd

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