With the Union Budget for the financial year 2012-2013, the excise duty hasbeen raised from 10% figure to 12%. This news created an upheaval in the whole auto industry and the auto manufacturers refused to stomach the increased prices themselves and have decided to pass it on to their consumers. Not lagging far behind in the price hike race post budget, Tata Motors too have come out with the increase in car prices across models. The prices have been raised for all its vehicles, the car prices have been raised from Rs.2,000 and go upto a hefty figure of Rs.35,000 depending upon the model. Although the company has not come out with model wise price increase, its segment wise increase is out.
In the passenger vehicle segment the price hike will vary between Rs.2,000 to Rs.8000. The models under this segment are the small cars Tata Nano,Tata Indica and the sedan family of Tata Indigo. The price rise for Sumo, Safari and Aria i.e the SUV segment will start will Rs.8000 and go upto Rs.35,000. The excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24 per cent from the previous 22 per cent with a fixed duty of Rs 15,000.
The excise duty has been raised from 22% to 24% with a fixed duty of Rs.15,000 for vehicles exceeding four metres length and having engine under 1500 cc in diesel variant and under 1200 cc in petrol variant. Whereas the car exceeding four meters length and engine powers too of over 1,500 cc and 1,200 cc respectively will have to pay a hefty additional duty of 27%. That is not all, the vehicles that come through CBU route with a price over $40,000 and with engine power of over 3,000 cc (petrol) and 2,500 cc(diesel), will have to pay 75% basic customs duty, which is 15% more from the previous one.