Tata Motors hiked Prices of Passenger Vehicles by up to 35000 rupees

Auto giant Tata Motors on 19 March 2012 increased prices of its passenger vehicles, including the Nano, by up to 35000 rupees with immediate effect. The move came in the wake of hike in excise duty in the Budget for 2012-13.

The price was raised as per the excise duty hike in the Budget. In passenger cars, the increase will vary between Rs 2,000 and Rs 8,000 depending upon various models.

The passenger car division of Tata Motors includes Nano, Indica and Indigo series cars.In case of utility vehicles like Safari, Aria and Sumo, the hike will be from Rs 8,000 to 35000 rupees.

The Union Finance Minister, Pranab Mukherjee in his budget speech had proposed to raise excise duty to 12 per cent from 10 per cent.

The excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1500 cc, but the length exceeding four meters have been increased to 24 per cent from the previous 22 per cent with a fixed duty of 15000 rupees.

Petrol and diesel driven vehicles having length exceeding four meters and engine capacity of over 1200 cc and 1500 cc respectively will now be charged with an ad valorem duty of 27 per cent, instead of the earlier 22 per cent with a fixed duty of 15000 rupees.

The  basic customs duty for fully imported vehicles priced over 40000 dollar and with engine capacity of over 3000 cc and 2500 cc for petrol and diesel driven vehicles respectively was also hiked to 75 per cent from 60 per cent earlier.