New Delhi: Following the tax initiatives announced in the Union Budget, carmakers Maruti, Hyundai and Tata Motors have announced their intention to increase prices of their cars.
On the contrary Czech carmaker Skoda on Thursday announced a reduction of up to Rs 24,000 across its models.
Hyundai Motor India Limited (HMIL), India's second largest car manufacturing company, will revise the prices of all its cars by the middle of this month. Though the revised prices are likely to be effective by March-end, the company is yet to give out exact details. ''The price hike was mainly because of the additional one per cent education cess that the Centre has decided to levy in this fiscal,'' said Hyundai in statement.
''Due to a one per cent increase in education cess in the Union Budget, Hyundai cars would cost more to the end consumer,'' HMIL Managing Director HS Lheem was quoted by PTI.
The price cut announced by Skoda comes on account of the peak rate of customs duty declining from 12.5 per cent to 10 per cent. The decision has impacted most of the car models with high import content.
"We have been reviewing the price implications with the recent Budget impact. A reduction up to Rs 24,000 is expected across various models with effect from March 1," Karsten Bogun, Managing Director, Skoda India said in a statement.
Honda Siel which had indicated a price increase of Rs 10,000 on its fully imported model, the CR-V, says that it is still working out the exact impact on other models which are assembled locally, but carry a high import content.
"Such models include the Civic, Accord and City. However, we are still studying the exact impact on the pricing of these models," NK Goila, Vice President, Honda Siel said in a statement.
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