Tata Motors announces a price increment by up to Rs.2,000-35, 000 for all its passenger vehicles. The decision comes in wake of the Union Budget 2016.17 which has slapped a cess of 1-4 per cent on different passenger vehicle categories.
Tata Motors today announced a hike by up to Rs.35, 000 in wake of the Union Budget 2016-17. As per the Tata Motors spokesperson “In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect.”
At present, Tata Motors range of automotive extends from Nano, the small car, to Aria, the premium crossover. The price range of these vehicles goes from Rs.2.04 lakh – Rs.15.79 lakh (ex-showroom, Delhi). The price increment will extend from Rs.2, 000 to Rs.35, 000 depending on category. The Indian government plans to impose 2.5 per cent of cess (import or sales tax) over diesel based vehicles whose length is under 4 meters and engine capacity is less than 1500cc. Vehicles with higher engine capacity and length will be subject to cess of 4 per cent.
On the other hand, petrol/CNG/LPG based vehicles with under 4-meters length and less than 1, 500cc engine capacity are slapped with a cess of one per cent. Tata is not the only one, several other car makers including Hyundai, Honda, and other are planning to hike prices of their vehicles up to a considerable extent. Hyundai, for example, plans to pull the prices of its vehicles in a range of Rs.3000 – 80, 000 for its vehicles whose price range differs between Rs.3.02 lakh and Rs.30.79 lakh. Au contraire, the same price range for Honda cars extends from Rs.4000-80, 000 on ex-showroom prices.