Industry & Economy
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Budget
Your dream car to become dearer
Our Bureau
New Delhi
,
July 8
IF you were waiting till the Union Budget to purchase your dream car, expecting a price decrease in automobiles from the Budget, tough luck then.
While the excise duty reduction to 16 per cent on cars did not take place, the announcement of a two per cent education cess has resulted in car makers announcing price hikes on their models.
In what is probably the first reaction to the imposition of the cess on Thursday, car market leader Maruti Udyog announced an increase in prices on its models by 0.38 per cent.
In a statement issued, Maruti said, "Following the two per cent cess levied in the Union Budget for 2004-05, the ex-showroom price in Delhi has gone up by about 0.38 per cent across all models." Consequently, the price of a Maruti 800 Standard (Euro II) has gone up by Rs 792 to Rs 2,05,620; the price of an Alto LX has gone up by Rs 1,026 to Rs 2,66,710; the price of a WagonR LX has gone up by Rs 1,262 to Rs 3,28,166, and the price of a Baleno LXi has gone up by Rs 2,153 to Rs 5,62,292.
Maruti may not be the only car maker to push up prices. General Motors India in a statement has hinted that the imposition of the cess could result in price hikes.
"The four per cent increase in excise duty of steel and two per cent cess on other tax proposals will put additional cost pressure on the manufacturers because of the cascading effect forcing them to share the burden with the customers," said Mr Aditya Vij, President and Managing Director, General Motors India, said in the statement.
Hyundai Motor India, however, said it would not increase prices of its models due to the cess.
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