Volvo Auto India has announced a price revision across its model range in India. Effective from April 1, some vehicles will cost more by up to Rs 2.33 lakh, while a select few will be cheaper by up to Rs 3.04 lakh. Volvo issued a statement in this regard stating that the price revision has been undertaken to offset the increase in taxes in the Union Budget 2016-17.
Post the price revision, products from the company are now priced between Rs 25.49 lakh and Rs 80.23 lakh (ex-showroom Delhi). The statement reads, "The increase is a result of the recently proposed taxation norms on cars across various categories in Budget 2016."
The upward revision of the ex-showroom price is said to be 3 per cent. The price hike ranges from Rs 68,700 on S60 Inscription model to Rs 2.33 lakh on the XC90 Inscription. The company has reduced prices ranging between Rs 24,000 on S60 Momentum to Rs 3.04 lakh on V40 Cross Country D3 Inscription. Speaking on the occasion, Volvo Auto India MD Tom von Bonsdorff said, “This year's budget has forced us to relook at the pricing in order to provide the best-in-class products to our customers.”
The government has decided to impose 2.5 per cent cess on the diesel vehicles of length not exceeding four metres and engine capacity not exceeding 1500cc while higher-engine capacity and SUVs and bigger sedans were slapped with a cess of 4 per cent on the value of the car. Finance Minister Arun Jaitley also proposed to collect tax at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs 10 lakh.
