Maruti Suzuki India is trading lower by 3% at Rs 1,259 after the Maharashtra government has proposed hike in road and registration tax on vehicles in its Budget for FY13. Maharashtra, and particularly Mumbai, is a key market for carmakers and is estimated to contribute as much 13-14 % of national sales.
The buyers of petrol vehicles will have to shell out an additional 2%, while for diesel customers the hike will be steeper as the tax has gone up by 4%, once budget proposals come into effect on April 1, the report suggest.
“The new measure is likely to have a negative impact on overall demand," added report quoting Shashank Srivastav, chief GM (sales & marketing) at Maruti Suzuki.
A combined around 50,000 shares have changed hands on the counter so far on both the exchanges.
