The northward journey of vehicle prices seems nowhere near its end. Government of India today raised the excise duty of cars with engine capacity above 1500cc. For the engine capacity of 1500-1999 cc, a specific duty of 15,000 rupees per unit has been imposed. For vehicles of 2000 cc and above, the specific duty is 20,000 rupees per unit.
Impact on the prices:
Prices of Maruti SX4, Hyundai Verna,Renault-Logan, Honda Civic and Honda Accord are bound to go up by Rs 15,000 per unit. The prices of Utility vehicls Tata Safari, Tata Sumo, Mahindra Scorpio and Bolero and Toyota Innova would go up by Rs 20,000 per unit. The prices of Beamers, Merc’s and Skoda’s will also raise by Rs 20,000 per unit.
The actual hike in the on-road price might be substantially more than the hike directed by the government. However, the announcement of Rs 15,000 hike will actually result into an addition of Rs 6,000-7,000 to the price, taking the total burden to Rs 22,000 per vehicle due to the subsequent increase in value added tax (VAT), road tax and insurance. Similarly, a Rs 20,000 hike will result in an icrease in price of Rs 27,000-28,000 per unit.
Products—————-Old Price——–New Price
- Chevrolet Optra 8.28 8.43
- Chevrolet Tavera 6.53 6.73
- Honda Civic 11.42 11.57
- Hyundai Verna 6.55 6.70
- Mahindra Scorpio 6.99 7.19
- Ford Fiesta 6.85 7.00
- Maruti Suzuki SX46.54 6.69
- Tata Scorpio 8.86 9.09
- Tata Sumo 6.55 6.75
- Skoda Octavia 10.95 11.1
The new duty structure will not make any impact on the prices of small cars.