The Union Budget 2012-13 has resulted in dynamic changes in the Indian automotive sector leading to surge in prices of vehicles of majority of automakers such as Maruti, Mahindra & Mahindra and Honda along with luxury car maker Mercedes-Benz..
Following the suit is the leader in manufacturing commercial vehicles and the third largest auto giant in the country, Tata Motors. The excise duty hike by 2 percent has put forth a hurdle in the company’s future plans. The company has confirmed that the prices will shoot up in proportion to the excise duty hike, which will add on the final price of the vehicle that is to be ultimately borne by the customers.
Finance Minister, Pranab Mukherjee declared an increase of 2 percent on the imposition of existing excise duty of 22 percent. However, a matter of relief was the untouched diesel fuel prices.
With Mercedes-Benz announcing a rise of prices of its vehicles by Rs. 3 Lakhs, the vehicles of the leading players such as Maruti, Mahindra & Mahindra and Honda will witness a rise in prices by up to Rs. 70000.
The impending plans of investment and expansion of the automobile manufacturers in the Indian market will however not be adversely affected since the customs duty has also seen a hike indicating an increased opportunity for the domestically manufactured vehicles for capturing the surging demand.
