Maruti Suzuki hikes prices across model range

The Union Budget 2016 didn’t have too much in favour of the automobile industry. In fact the increase in infrastructure cess has resulted has forced car makers to hike the prices across its model range. Tata, Hyundai and Mercedes-Benz had already announced price hikes immediately after the budget, and now Maruti Suzuki has joined the bandwagon. 

"Following the infrastructure cess on automobiles in the Union Budget 2016-17... prices of its models would go up in the range of Rs 1,441 to Rs 34,494 across its models," Maruti Suzuki India (MSI) said in a statement.

Fortunately for Maruti Suzuki both its smart hybrid offerings, Ciaz and Eriga are exempted from both the revision in infrastructure cess and will thereby continue to be priced the same. The government has implied 2.5 per cent cess on diesel vehicles that are shorter than 4 metres in length and with engines that displace less than 1,500cc. SUVs and sedans have been levied a cess of 4 per cent on the value of the car. These taxes are over and above the 1 per cent levied on petrol / LPG and CNG driven vehicles that are under 4 metres in length and have an engine not exceeding 1200cc.