Major auto makers in the country on Friday said the government’s decision to increase central excise duty to 10 per cent by saying they will increase car prices–possibly by up to Rs 25,000.
While the country’s largest car maker, Maruti Suzuki India (MSI), said its car will become costly by two per cent, Hyundai Motor India said it will result in a price rise of Rs 6,500-25,000 on average.
“Car prices will go up by about two per cent. This is essential to offset the increase in central excise duty announced by the Finance Minister today,” said MSI Chairman R C Bhargava.
The government on Friday increased the central excise duty by two per cent to 10 per cent, partially rolling back the cut made earlier.
A Hyundai Motor spokesperson said: “We will be forced to hike our prices by Rs 6,500 to Rs 25,000.”
Volvo Auto India also said that the increase in excise duty will result in increase of price of its cars.