Tata hikes car prices by Rs 35,000 across models

The Indian auto industry is mourning over the increase in excise duty that the Union Budget 2012-13 has imposed. The Finance Minister, Mr. Pranab Mukherjee has increased the standard excise duty from 10 percent to 12 percent. To cope with this harsh blow the Indian auto giant Tata Motors announced that all their passenger vehicles including Nano would have to bear an increase in price by up to Rs. 35,000 with immediate effect.

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A spokesperson from Tata Motors mentioned that the company has responded to the hike in excise duty with an increase in car prices that will vary between Rs. 2000 and Rs. 8000 for different models. For the wide range of vehicles that the company has in the commercial vehicles category, the company has ultimately passed on the extra load to the consumers, he added.

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In the passenger vehicles, Tata Motors has Tata Nano in the small car segment, the Tata Indica series in the hatchback section and Tata Indigo series in the sedan segment. The company has not released the price increase separately for each model. The vehicles that fall in the Utility segment like Tata Safari, Tata Sumo and Tata Aria, will be facing the price increase between Rs. 8,000 and Rs. 35,000.  All the cars in the small segment i.e.

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The cars with length less than four meters and engine capacity less than 1,200cc in case of petrol and 1,500cc in case of diesel will witness an increase of 2 percent in the excise duty i.e. from 10 percent to 12 percent. The cars with length exceeding four meters but engine capacity less than 1,200cc for petrol cars and 1,500cc for diesel cars, will see an increase of 2 percent in the excise duty i.e. from 22 percent to 24 percent. A fixed duty of Rs. 15,000 will also be charged.

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The cars with length exceeding four meters and engine capacity more than 1,200cc for petrol cars and 1,500cc for diesel cars, will have to bear an increase of 5 percent in the excise duty i.e. from 22 percent to 27 percent. Additionally, the fixed duty of Rs. 15,000 will be charged. There has been an increase in the basic customs duty too which is of 15 percent. For fully imported units that are priced more than USD 40,000 and have engine capacity of more than 3,000cc in case of petrol and 2,500cc in case of diesel, the customs duty has increased from 60 percent to 75 percent.

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