Maruti, Hyundai and Honda increase prices as excise duty goes up

NEW DELHI: Car prices finally shot up from the first week of the New Year as the Centre's decision to charge higher excise duty saw manufacturers, including top ones such as Maruti, Hyundai and Honda, increase retail prices. The move will further dampen buyer sentiments in an already depressed car market. The companies now await a relief in the Modi government's first full Budget in February.

While Maruti is yet to inform its dealerships of the new prices — Monday being the first working day in the new year — Hyundai has already done the calculations and increased retail prices.

"We have increased prices in the range of Rs 15,000-1,27,000 and this has been done on account of the higher excise duty, increased cost of inputs and the currency fluctuations," Hyundai India senior VP Rakesh Srivastava told TOI. The retail price for the entry-level Eon has gone up by Rs 15,400, for the i10 by Rs 21,500, for the Elite i20 by Rs 27,000 and for the Santa Fe SUV by 1.27 lakh, Srivastava said.

Honda increased prices by up to Rs 60,000. The entry-level Brio is now dearer by over Rs 15,000, the Amaze sedan by Rs 19,000 onwards and the City by up to Rs 48,000, company officials said.

Sources in Maruti said that the Alto will be dearer by at least Rs 10,000 while other models like the Swift will get expensive by over Rs 20,000 and the Dzire by more than Rs 25,000. "The final hikes are still being worked out and will be announced soon," the sources said.

Faced with a tight fiscal situation and a difficult fiscal deficit target of 4.1% of the GDP, the government had to swallow the bitter pill of a duty hike. The duty hikes have impacted not only the car industry but also white goods like air-conditioners, refrigerators and televisions where the duty has again gone up.