Volvo Auto India goes for vehicle price revision

New Delhi: Volvo Auto India has taken a price revision across its model range in the country, with some vehicles set to become dearer by up to Rs 2.33 lakh, while a select few will be cheaper by up to Rs 3.04 lakh.

The price revision has been undertaken to offset the increase in taxes in the Union Budget 2016-17, the company said in a statement.

The company, which sells models such as sedans S60, SUVs XC60 and XC90 along with luxury hatchback V40, said the upward revision of the ex-showroom prices is 3 per cent.

After the price revision, the company's products are now priced between Rs 25.49 lakh and Rs 80.23 lakh (ex-showroom Delhi).

"The increase is a result of the recently proposed taxation norms on cars across various categories in Budget 2016," it said.

The price hike ranges from Rs 68,700 on S60 Inscription model to Rs 2.33 lakh on the XC90 Inscription.

The company has also reduced prices of three of its models, ranging between Rs 24,000 on S60 Momentum to Rs 3.04 lakh on V40 Cross Country D3 Inscription.

"This year's budget has forced us to relook at the pricing in order to provide the best-in-class products to our customers," Volvo Auto India MD Tom von Bonsdorff said.

At the same time, the company has been able to offer significant price reduction on S60 Kinetic, S60 Momentum and V40 Cross Country D3 Inscription variants, without compromising on the features and specification levels, he added.

The government has decided to impose 2.5 per cent cess on diesel vehicles of length not exceeding 4 metres 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 metres 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.