Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.
Ad

Budget 2013-14: Premium cars to cost more, small cars spared

February 28, 2013, 05:44 PM IST by Ninad Mirajgaonkar
5451 Views
3 comment(s)
Budget 2013-14: Premium cars to cost more, small cars spared

The 2013-14 Budget will not bring smiles to the automobile industry; but there is certainly some relief. The government has not hiked the diesel car prices or the excise duty, so the prices of the small and large cars will remain unchanged. However, there are few changes in the tax rates for the SUVs and the premium cars. 

The finance minister, P.Chindambaram, announced that the duty on SUVs will be increased to 30 per cent; an increase of three per cent from current rate of 27 per cent. There is still some ambiguity in the government’s definition of SUVs, but prices of premium models like the Toyota Fortuner, Mahindra XUV500 and Ssangyong Rexton, along with that of the premium MUVs like Toyota Innova will see a hike of around 2.5 per cent to 3.5 per cent immediately. 

Similarly the customs duty on imported cars has been increased from 75 per cent to 100 per cent. The move is mainly to generate additional revenue for the government and to encourage more localisation. However in immediate future it will only increase the prices of cars imported as CBUs (Completely Built Unit). Expect premium cars prices to jump by 10 per cent to 15 per cent in the coming weeks.

The government has accepted the SIAMs proposal to extend the concession on the import of key components for the hybrid and electric cars in the budget – mainly the lithium ion batteries. It will encourage Indian manufacturers to invest in development of vehicles running on alternative energy. Also, we can now expect Mahindra to launch the Reva e20 soon.

 

  • FaceBook Logo
  • Twitter Logo
  • Email Logo
Show CommentsHide Comments
bell icon
Never miss an update
Receive latest updates from CarWale
Ad
  • Upcoming Cars

Tata Tiago EVTata Tiago EV

Nov 2019

5L - ₹ 7L
Hyundai Tucson FaceliftHyundai Tucson Facelift

Nov 2019

18L - ₹ 20L
Tata Tigor FaceliftTata Tigor Facelift

Nov 2019

6L - ₹ 7L
Audi Q2Audi Q2

Nov 2019

28L - ₹ 32L
Jaguar XE FaceliftJaguar XE Facelift

4th Dec 2019

40L - ₹ 48L
All Upcoming Cars
Buying a new Car?Leave a missed call1800 2090 230(Toll free)

Select your city to avail offers

Currently available only in