Showing its response to the annual budget hike, the Indian subsidiary of Mercedes Benz has declared that it will hike its product prices by up to Rs.3 lakhs.
The petrol cars with engine capacity of 1,200 cc and diesel cars with engine capacity of 1,500 cc and with length longer than four metres, the excise duty has been hiked form 22 percent to 24 percent. Likewise, the excise duty of the cars holding engine capacity more than 2000cc is now 27 percent and not 22 percent.
Regarding this hike, Mr.Suhas Kadlaskar, the Director (Corporate Affairs and HR) of Mercedes Benz India reported that the Budget is very disappointing for them. They were hoping for some reduction in taxes for large vehicles instead of hiking it further. He said that the premium car makers usually bring in advanced technology in to the country and this step will be very counter productive.
Kadlaskar also added that they are going to pass on the additional burden to customers. They have not decided the exact amount yet, but on an average it will vary between Rs.2 lakhs and Rs.3 lakhs.
Similarly for fully imported vehicles with FOB value more than $40,000, the basic customs duty has been increased from 60 percent to 75 percent which will result in the price hike of Maruti Kizashi, BMW X5, X6, 7-Series, Mercedes SUVs, Volvo cars, Honda CR-V, Nissan X-trail and Toyota Camry.