Tata Motors has hiked the price of its passenger vehicles by Rs 35,000. The hike is all because of the infrastructure cess imposed by the Government of India as mentioned in the Union budget 2016. The Tata Motors spokesperson stated, “In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect.”
However, the price hike will range from Rs 2,000 to Rs 35,000, which will be based on the category of the vehicle and the infra cess imposed on it. Presently, Tata Motors sells variety of passenger vehicles starting from INR 2.04 lakh to Rs. 15.79 lakh (ex-showroom Delhi). Recently, the Union budget came out and it made people sad. In other words, it holds a bad impact on the automotive sector. The government will impose infra cess of 2.5 per cent cess on diesel vehicles which are not exceeding 1,500cc, while the larger SUVs and bigger sedans will be liable for a cess of 4 per cent.
Small cars that run on petrol/ LPG/CNG will be liable for 1 percent infra cess. With the budget release, several other automakers have started to increase the prices. Meanwhile, Hyundai Motor India is also planning to hike the prices of its small cars by Rs.3000. It will increase the prices of SUVs by Rs.80,000 which come into price range of Rs. 3.2 lakh to Rs 30.7 lakh.
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