NDTV Profit

Maruti to Hike Car Prices By 4% to Offset Higher Taxes

The company was planning to increase prices this year to offset rising input costs, but the decision has been deferred because higher excise duty rates have already pushed up prices and another hike would further impact the market, a top official said.
EMAIL
COMMENTS
Maruti to Hike Car Prices By 4% to Offset Higher Taxes

Maruti Suzuki India, the country's top carmaker by volume, will increase car prices by 4 per cent following the government's decision not to extend excise duty concessions to automakers beyond December 31, a company executive told Reuters on Tuesday.

A tax break was first granted in February last year to revive sluggish car sales and later extended until the end of 2014. Automakers had been hoping the concession, amounting to 3-6 per cent of the price of a car before the imposition of all duties, to continue in the new year.

"Whatever excise duty hike has happened from the government's side we are passing that on to customers," said R.S. Kalsi, executive director at Maruti, which is majority owned by Japan's Suzuki Motor Corp.



The company was planning to increase prices this year to offset rising input costs, but Mr Kalsi said the decision has been deferred because higher excise duty rates have already pushed up prices and another hike would further impact the market.
 



For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
ALSO READ These 10 Transactions Will Get Reported To Income Tax Department

Advertisement

Advertisement

GAINERS / LOSERS

Advertisement