The three luxury Germany based auto pioneers, Mercedes-Benz, BMW and Audi have faced a double jolt due to the rise in excise duty as well as custom duty that came up with the release of Budget 2012-13. The premium vehicles of these foreign multinationals are expected to become dearer by Rs. 3 lakhs approximately post the hike in excise and custom duties.
These luxury automakers are known for bringing in the country, the most advanced technological upgradations and such a move is conceived to be discouraging to a great extent.
Mr. Suhas Kadlaskar, Director (Corporate Affairs and HR), MB India, said, "We are going to pass on the additional burden to customers. We have not decided the exact amount yet, but on an average it will vary between Rs 2 lakh and Rs 3 lakh."
Mercedes-Benz will be hit by the hiked excise duties with the production of its current line-up, C, E and S Class premium sedans in India while the company’s imported cars E-Class Coupe, E-Class Cabriolet, GL-Class, SLS AMG, AMG-Series, ML-Class, Maybach and R-Class will be now shelved at a higher price due to rise in custom duties.
Mr. Michael Perschke, Head of Audi India, commented upon the automaker’s future course of action post Budget release saying that surprise came in the form of rise in excise and custom duties of large cars that has probably seen an increasing demand in the country.
While Mercedes-Benz and Audi are sure to pass on the additional costs to their customers, BMW is set to take a strategic step and has not announced any form of price hike of its current range in India.
