Car prices going up in India due to Budget tax hikes

Car prices going up in India due to Budget tax hikes

The Indian car industry has overall decided to pass on the burden of additional education cess to the end customer in the market.

The budget has proposed an addition in the education cess which would result in a minor update in the prices of the cars in the market.

Maruti has announced that they would be hiking the prices of their car starting from March 15. They are delaying the hike to help customers who delayed the purchase of the car expecting some relief from the budget.

Ford India had this to say about the upcoming price hike on their cars: “We will be considering an increase in the prices of the Fiesta and Ikon that have high local content. We would need to study the impact of customs duty reduction on the price of the Endeavour.”

Hyundai and other car makers are yet to release the confirmation on how much price hike their models would see in the market. General Motors India president and MD Rajeev Chaba was disappointed with the Budget as he said: “It was not in line with the expectations of the sector. The industry expected a reduction in the excise duties on motors cars, phase out of CST, which have not happened.”