Mercedes Benz India has confirmed that it will hike the prices of its line up of cars in India by up to Rs 3 lakh. This move is owing to the higher duties that come from the new budget, Expressing his disappointment, Mercedes Benz India Director (Corporate Affairs and HR) Suhas Kadlaskar said, “The Budget is very disappointing for us. We were hoping for some reduction in taxes for large vehicles instead of hiking it further,the premium car makers usually bring in advanced technology in to the country and this step will be very counter productive. We are going to pass on the additional burden to customers. We have not decided the exact amount yet, but on an average it will vary between Rs 2 lakh and Rs 3 lakh,”
Finance Minister Pranab Mukherjee hiked the excise duties for cars with length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively to 27% from 22% and a fixed duty of Rs 15,000.If this alone was not enough, The Finance Minister also increased the customs duty for CBUs with FOB value more than $40000 & engine size more than 3000cc (petrol) & 2500cc (diesel) to 75% from earlier 60%.
“The increase in customs duty on cars and SUVs, valued above $40,000, from 60% to 75% seems to be a step to encourage local manufacturing, value addition and employment,” said SIAM President S Sandilya appreciating this move.