New Delhi, Mar 1 (UNI) With the car makers not willing to bear the brunt of the one per cent additional education cess announced in the Union Budget 2007-08, the price hike is set to pass on the end-consumers.
The automobile firms have confirmed price rise, though expected to be marginal ranging from Rs 500 to Rs 1,500, across all models from middle of this month.
Car market leaders Maruti and Hyundai said they are yet to decide up on the quantam of the price rise.
General Motors India Vice President (Sales and Marketing) Ankush Arora said the increase in the price will be minimal ranging from Rs 575 to Rs 1475 for their products.
''Its just because of the new government regulation,'' he added.
Hyundai Motor India Managing Director H S Lheem said due to the a one per cent increase in education cess in the Union Budget, Hyundai cars will cost more to the end consumer.
''The increase in price would be effective from sometime around the middle of the month although the exact quantum of increase is being worked on.'' Ford India said it will be considering an increase in the prices of the Fiesta and Ikon that have high local content. The company will study the impact of customs duty reduction on the price of the Endeavour.
The industry has expressed its dissappointment over the budget calling it as more agriculture and education centric.
''We were looking for excise duty relief on larger passenger vehicles and wanted more on infrastructure creation,'' Mahindra&Mahindra Automotive Unit President Pawan Goenka said.
General Motors President and Managing Director Rajeev Chaba also said the auto industry expected a reduction in the excise duties on motor cars, phase out of CST, elimination of surcharge, withdrawal of FBT, removal of cess.
UNI
The automobile firms have confirmed price rise, though expected to be marginal ranging from Rs 500 to Rs 1,500, across all models from middle of this month.
Car market leaders Maruti and Hyundai said they are yet to decide up on the quantam of the price rise.
General Motors India Vice President (Sales and Marketing) Ankush Arora said the increase in the price will be minimal ranging from Rs 575 to Rs 1475 for their products.
''Its just because of the new government regulation,'' he added.
Hyundai Motor India Managing Director H S Lheem said due to the a one per cent increase in education cess in the Union Budget, Hyundai cars will cost more to the end consumer.
''The increase in price would be effective from sometime around the middle of the month although the exact quantum of increase is being worked on.'' Ford India said it will be considering an increase in the prices of the Fiesta and Ikon that have high local content. The company will study the impact of customs duty reduction on the price of the Endeavour.
The industry has expressed its dissappointment over the budget calling it as more agriculture and education centric.
''We were looking for excise duty relief on larger passenger vehicles and wanted more on infrastructure creation,'' Mahindra&Mahindra Automotive Unit President Pawan Goenka said.
General Motors President and Managing Director Rajeev Chaba also said the auto industry expected a reduction in the excise duties on motor cars, phase out of CST, elimination of surcharge, withdrawal of FBT, removal of cess.
UNI
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