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Tata Motors hikes vehicle prices by Rs 2,000 - Rs 35,000

March 03, 2016, 05:07 PM IST by CarWale Team
Tata Motors hikes vehicle prices by Rs 2,000 - Rs 35,000

Tata Motors has announced an increase in passenger vehicle prices by up to Rs 35,000 with immediate effect. The company has reportedly hiked the prices to offset the impact of infrastructure cess proposed in the Budget 2016 -17. 

Speaking about the price hike, Tata Motors spokesperson, said to PTI, “In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect.” 

As per updates, the increase in the passenger vehicles would be in a range of about Rs 2,000 to Rs 35,000, depending on the exact cess amount for the specific category. The company sells a range of passenger vehicles, ranging from entry-level small car Nano right up to the premium crossover Aria, ranging between Rs 2.04 lakh and Rs 15.79 lakh (ex-showroom Delhi). The government has decided to impose 2.5 per cent cess on diesel vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,500cc, while higher engine capacity and SUVs and bigger sedans were slapped with a cess of 4 per cent on the value of the car.

Sources have added that these would be above a cess of 1 per cent on petrol/ LPG/CNG driven vehicles with length that is not exceeding 4 meter and engine capacity not exceeding 1,200cc. Early this week, Hyundai Motor India said that it plans to hike vehicle prices ranging between Rs 3,000 on entry-level small car Eon to about Rs 80,000 on SUV SantaFe, which are priced between from Rs 3.20 lakh to about Rs 30.79 lakh. Honda Cars India also plans to raise prices in a range of Rs 4,000 to Rs 80,000. Honda India sells about six models from entry-level Brio right up to the premium SUV CR-V which is priced between Rs 4.27 lakh and Rs 25.23 lakh (all prices ex-showroom Delhi).

Tags:Price hike,tata cars,budget 2016-17
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