Effective from April 1, Volvo Auto India has revised prices across its model range in the country. While some models will be cheaper by Rs 3.04 lakh, most of them will see an upward revision of up to Rs 2.33 lakh. The price hike has been undertaken to offset the increase in taxes in the Union Budget 2016-17.
For the car whose prices have been hiked, the upward revision of the ex-showroom price is said to be 3 per cent. The products are now priced between Rs 25.49 lakh and Rs 80.23 lakh (ex-showroom Delhi). The S60 Inscription model has been hiked by Rs 68,700, while the XC90 Inscription costs an upward Rs 2.33 lakh.
Volvo has reduced prices for the S60 Momentum by Rs 24,000 to Rs 3.04 lakh on the V40 Cross Country D3 Inscription. Speaking on the occasion, Volvo Auto India MD Tom von Bonsdorff said, “This year's budget has forced us to relook at the pricing in order to provide the best-in-class products to our customers.”
Finance Minister Arun Jaitley proposed collection of tax at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs 10 lakh. As stated by government 2.5 per cent cess will be imposed on diesel vehicles of length not exceeding 4 metres and engine capacity not exceeding 1,500cc. Whereas, higher-engine capacity SUVs and bigger sedans will attract 4 per cent cess over the cars value. The smaller petrol/ LPG/CNG driven vehicles featuring length and engine capacity not over 4 metres and 1,200cc face additional 1 per cent cess.
