Cars prices set to zoom in India

Your dream car has just got costlier, thanks to the 1% education cess on all taxes. Honda Siel Cars India Ltd (HSCIL) has already increased the Honda CRV prices by Rs 10,000-12,000 with effect from Wednesday night and Hyundai Motors India Ltd (HMIL) is expected to announce the hike on Thursday. Maruti Udyog Ltd (MUL) has given prospective buyers a grace period of 15 days; it will implement the new prices from March 15. "Going by the 16% excise duty on cars, the prices are expected to go up by Rs 1,000," said a source. Even HSCIL is expected to hike the prices of all its models by 1% to 1.5% within a fortnight, apparently because the CST exemption of its Greater Noida plant ends in two weeks. "With HSCI now set to pay CST to the UP government, the burden will have to be passed on to the consumers," a source said.

Courtesy: EconomicTimes
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