Hyundai hikes vehicle prices after Budget announcements

Hyundai Motor India Ltd (HMIL) announced its price rise of Rs. 82,906 of its vehicles across all models on account of new levies announced in the Union Budget.

The price hike effective from March one will cost the consumers a hike between Rs. 2,889 and Rs. 82,906 depending on the model.

According to a release by the company, HMIL Senior Vice President (Sales and Marketing) Rakesh Srivastava said, "The new levies in Union Budget 2016-17 have led to price increase across the models ranging from Rs. 2,889 to Rs. 82,906."

The change in price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types, which is a result of the government's decision to impose 2.5 percent cess on diesel vehicles.

Engine capacity, which does not exceed 1,500 cc while higher engine capacity and SUVs and bigger sedans were slapped with a cess of four percent on the value of the car.

Finance Minister Arun Jaitley also proposed to collect tax at source at the rate of one percent on purchase of luxury cars exceeding value of Rs. 10 lakh.