Hyundai Motor India Ltd (HMIL) today raised prices of its vehicles by up to Rs 82,906 across models on account of new levies announced in the Union Budget.
New Delhi: Hyundai Motor India Ltd (HMIL) today raised prices of its vehicles by up to Rs 82,906 across models on account of new levies announced in the Union Budget.
The price hike effective from March 1 will be between Rs 2,889 and Rs 82,906 depending on the model, HMIL said in a statement.
The company sells a range of vehicles from entry level small car Eon with price starting at Rs 3.20 lakh to luxury SUV Santa Fe tagged at Rs Rs 30.79 lakh (ex-showroom Delhi).
HMIL Senior Vice President (Sales and Marketing) Rakesh Srivastava said: "The new levies in Union Budget 2016-17 have led to price increase across the models ranging from Rs 2,889 to Rs 82,906...The change in price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types."
Yesterday, Maruti Suzuki India had hiked prices of its vehicles across models in the range of Rs 1,441 to Rs 34,494 in order to offset the impact of infrastructure cess.
Already, German luxury carmaker Mercedes-Benz and Tata Motors have announced to raise prices of their entire product portfolios.
While Mercedes has announced to hike prices by up to Rs 5 lakh from March 15, Tata Motors has raised prices of its passenger vehicles in the range of Rs 2,000 and Rs 35,000.
The government has decided to impose 2.5 per cent 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 per cent on the value of the car.
These are over and above a cess of 1 per cent 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 per cent on purchase of luxury cars exceeding value of Rs 10 lakh.