The second largest car manufacturer and country’s largest passenger car exporter, Hyundai Motor India Ltd. announced the price increase across all its models on account of the new levies announced in the Union budget. Hyundai Motor said in a statement, the price hike effective from March 1 will be between Rs 2,889 and Rs 82,906 depending on the model.
Hyundai Motor sells a range of vehicles starting from entry level small car Eon with price starting at Rs 3.21 lakh to luxury SUV Santa Fe priced at Rs Rs 30.79 lakh (Ex-showroom, Delhi). Already, German luxury carmaker Mercedes-Benz has announced to hike prices by up to Rs 5 lakh from March 15.
Commenting on the price hike, Mr Rakesh Srivastava, Sr. Vice President, Sales and Marketing said, “The new levies in Union Budget 2016 have led to price increase across the models ranging from Rs 2,889 to Rs. 82,906. Today’s customers are discerning on net off value offerings. The change in price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types.”
Announced in the Union Budget for the fiscal 2016-17, government has decided to impose 2.5 percent cess on diesel vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,500 cc, while a cess of 4 per cent was imposed on higher engine capacity SUVs and bigger sedans. These are over 1% of the Infrastructure Tax will be imposed on petrol, CNG and LPG Cars of length not exceeding 4-metre with an engine capacity below 1200cc.
Price Hike applicable to Hyundai cars:
Car Price Hike (Rs.)
(Ex- showroom, New Delhi)
Elite i20 4,886
Santa Fe 82,906