Indian Union Budget 2012-13 has been criticized by many and appreciated by lesser number of people in India. Being quoted to be a “Populist Budget” by some and “Inflation Inducing” by other, the Budget seems to strike a balance between growth and increasing Govt. tax revenues. All in all, the budget seems to be a strict budget overall with more increases in indirect taxes and very minor reliefs in Direct taxes. See complete highlights of Indian Union Budget 2012-13 here. From the Indian Automobile market’s perspective, this budget has been tough too with excise duties increased across the board, however there was a small relief that there were no special Diesel taxes imposed as it was being speculated and proposed by some. For a complete details on what all changes Indian Union Budget 2012-13 brings to Indian Automobile industry, check out our detailed coverage on –
Soon after the Indian Union budget was announced, Indian car makers officially announced price increase in their cars effective from as soon as 17th March 2012 for some of the brands, while other brands will follow new pricing from 1 April 2012 when the new rates become applicable. In this article, we bring you the details on the price increase of major car brand in India as announced post budget 2012-13.
Price Increase In Maruti Suzuki India Cars After Budget 2012
India’s largest passenger car maker, Maruti Suzuki India almost immediately after the budget speech announced that it will increase the prices of cars in India by about 2% which is the almost same as the additional excise duty burden which is put on each car of Maruti Suzuki India. This will make small cars like Maruti Alto costlier by Rs. 5000 to Rs. 7000 depending on the variants. The mid segment small cars like Wagon R, Estilo, Ritz, etc. will get a price hike ranging between Rs. 7000 to Rs. 11,000. Maruti Swift and Maruti Swift Dzire which are two very popular car models by Maruti will also see a hike between Rs. 9,000 to Rs. 14,000. The larger cars like Kizashi and Grand Vitara will get costlier by up to Rs. 70,000. For complete details on price change of Maruti cars, check out our detailed coverage here – Increase in Price Of Maruti Cars After Budget 2012 In India
Price Increase In Hyundai India Cars After Budget 2012
The second largest player in Indian passenger car market, Hyundai will also increase its car prices between Rs. 4000 to Rs. 8,000 for small cars like Hyundai Eon and Hyundai Santro. The popular Hyundai i10 and Hyundai i20 are expected to see a price increase ranging between Rs. 8,000 to Rs. 12,000. The price increase of Hyundai Verna Fluidic is likely to range between Rs. 12,000 to Rs. 20,000. The larger cars and SUVs which have got much higher tax changes will get affected more.
Price Increase In Tata Motors Cars After Budget 2012
The price of Tata Motors cars also go up by about 2% which translates into a price increase ranging between Rs. 6,000 to Rs. 12,000 for Tata Indica Series, Price Increase between Rs. 10,000 to Rs. 16,000 for the Indigo series. The larger cars like Safari, Aria etc. are also expected be dearer between Rs. 20,000 to Rs 50,000 depending on variants.
Price Increase In Toyota Cars After Budget 2012
Toyota India has also announced a price increase between Rs. 9,500 to Rs. 80,000 on its cars in India. The entry level Etios Liva and Etios Sedan will become dearer by up to about Rs. 14,000, the Corolla Altis will approximate cost more by up to Rs. 27,000, Innova will cost about Rs. 35,000 more and the larger of these, the popular Fortuner SUV will cost more by about Rs. 80,000.
Price Increase In Honda Cars After Budget 2012
Honda SIEL India has also announced that they will increase the prices of their Indian portfolio of cars between Rs. 4,000 (for small cars like Honda Brio) to Rs. 70,000 for SUVs like Honda CR-V in India. The prices of popular Honda City 2012 sedan are expected to increase by approximately between Rs. 15,000 to Rs. 20,000.
Updated on 22 March 2012-
Price Increase In Mahindra and Mahindra Cars After Budget 2012
Mahindra and Mahindra has announced a price increase ranging between Rs. 3,000 to Rs. 35,000 which will be applicable on different vehicles. The highest impact will come on SUVs like Mahindra Scorpio and popular Mahindra XUV500 which will become dearer by up to Rs. 35,000 in India.
Price Increase In Chevrolet (GM) Cars After Budget 2012
Price Increase In Skoda Cars In India After Budget 2012
image – Skoda Fabia Small Car India
Skoda India has announced a price increase between Rs. 17000 and Rs. 1 Lakh. For complete details, check out the detailed coverage here – Skoda India Car Prices Increase After Budget 2012-13.
Price Increase In Luxury Car Brands – Mercedes Benz, BMW And Audi In India
Luxury car market is probably the worst hit by the Budget 2012 in India. The prices of most luxury cars which are imported as CBU will shoot up by up to whooping 25% as the import Duty on CBU has been hiked from 60% to 75%. This translates into total duties and taxes etc. to sum up to about 137% effectively which were earlier around 110%. This means a completely built luxury car which used to cost about Rs. 40 Lakhs ex-showroom before budget 2012, will now cost Rs. 50 lakhs which is about Rs. 10 Lakhs more than the initial price.
For cars which are assembles in India, the price increase will not be that striking, but luxury car assembled in India which used to cost Rs. 40 lakhs pre-budget 2012 will not cost between Rs. 80,000 to Rs. 2 Lakhs more which is a considerable increase. This will surely bring some dampening in the sales of luxury cars in India. Mercedes cars in India will become dearer by up to about Rs. 3 Lakhs. BMW and Audi will also be similarly affected.
Price Increase Two Wheeler In India By Hero MotoCorp, Bajaj, Yamaha, Suzuki, TVS and Honda
Hero MotoCorp, Bajaj, Yamaha, Suzuki, TVS and Honda Motorcycles and Scooters India (HMSI) etc. all will be impacted by the burden of 2% increase in the excise duty. The prices of two wheelers are also likely to revise by about 2% starting April 2012 in India. This will mean a price increase ranging between Rs. 600 for an entry level commuter motorcycle to up to Rs. 2000 for high end sporty motorcycles. This will also impact the sales of two wheelers in India to some extent, but in absolute terms, the increase in price of entry level segment of cars will somehow makeup for a part of the lost sale because of price increase in two wheeler prices in India.
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