New Delhi: The day after Union Finance Minister P Chidambaram unveiled the Union Budget, which has imposed a 1 per cent additional education cess on auto components while bringing down the import duty, most carmakers decided to hike the prices of their products by passing on the burden to the consumer.
Luxury carmaker Skoda, however, decided to pass on the benefit of import duty cut by slashing up to Rs 24,000 on its models.
Immediately after the Budget on Wednesday, India's largest carmaker Maruti had announced a price hike on its products effective March 15 and Tata Motors, Ford and Hyundai followed suit on Thursday by announcing similar price hikes.
Tata Motors has announced price hikes across its passenger vehicle models, ranging from Rs 500 and Rs 1,200, while in case of General Motors products, the hike would be between Rs 600 and Rs 1,500. Hyundai said it is still working on the quantum of hike.
General Motors has decided to hike the prices of all its models — from hatchback Chevrolet UVA to luxury sedan Chevrolet Optra.
"The increase in prices will be between Rs 600 and Rs 1,500," PTI quoted a senior company official as saying.
Ford India said it was reviewing the impact on prices in light of the Budget.
"We will be considering an increase in the prices of the Fiesta and Ikon that have high local content. We would need to study the impact of customs duty reduction on the price of the Endeavour," a Ford India official said.
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