Budget 2016 impact: Hyundai, Honda, Mahindra hike prices by up to Rs 82,906

New Delhi: Auto makers Hyundai, Mahindra and Honda on Friday announced price hikes of up to Rs 82,906 across their entire product range 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, Hyundai Motor India Ltd (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).

Commenting on the development, 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."

After the price hike, the price of base variants of Eon will be increased by Rs 2,889, i10 by Rs 3,848; Grand by Rs 4,286; Xcent by Rs 4,726; Elite i20 by Rs 4,886; Active i20 by Rs 5,857; Verna by Rs 5,677; Creta by Rs 27,192; Elantra by Rs 45,044 and Santa Fe by Rs 82,906, HMIL said.

In a similar step, Honda Cars India hiked the prices of its entire product portfolio by up to Rs 79,000.

It has hiked the price of its entry-level car Brio in the range of Rs 4,000 to Rs 6,000, premium hatchback Jazz between Rs 5,000 and Rs 19,500 and mid-sized sedan City from Rs 24,600 to Rs 38,100.

The company has also hiked prices of multi-utility vehicle Mobilio in the range of Rs 21,800 to Rs 37,700 and that of its premium SUV CR-V between Rs 66,500 and Rs 79,000, depending upon different variants.

The company sells six models in the country, from Brio to CR-V, priced between Rs 4.27 lakh and Rs 25.23 lakh (ex-showroom Delhi).

Utility major Mahindra & Mahindra announced an increase in prices of its passenger vehicles by Rs 5,500 to Rs 47,000, effective April 1.

Prices of recently launched KUV100, however, have been hiked with immediate effect.

"In absolute terms, prices will go up by Rs 5,500 to Rs 47,000, depending on the model and prevailing prices," Mahindra Chief Executive for passenger car business, Praveen Shah said.

He, however, added that KUV100, launched in mid-January will attract new prices with immediate effect. While the petrol model will be costlier by 1 percent, the diesel model will be dearer by 2.5 percent.

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 percent 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 percent on the value of the car.

These are over and above a cess of 1 percent 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 percent on purchase of luxury cars exceeding value of Rs 10 lakh.