New Delhi: Within hours of the unveiling of the Union Budget for the new fiscal year, Maruti announced its decision to hike car prices with effect from March 15.
While the largest carmaker of the country didn't specify the exact reasons for such a move, it appears that the government's Budget announcement to impose an additional tax levy to raise funds for education may have triggered the price rise.
Interestingly, there was also speculation in the motown on Wednesday that Ford and Hyundai may follow suit in raising the prices on their products.
In his Budget announcements, Finance Minister P Chidambaram proposed to impose a levy of 1 per cent on all taxes to fund secondary and higher education, in addition to the existing 2 per cent levy which raises funds for basic education.
In a statement, Maruti said it would not raise the prices immediately to help consumers buy cars at pre-budget prices for the next fortnight. The extent of the price increase was not clear neither did Maruti clarify if the price rise is to take effect across the board or only on select models.
The automobile industry seems to be disheartened by the Budget proposals as the much-awaited excise duty cut on passenger vehicles did not materialise this year.
It seems the industry, which was anticipating such a cut, is now left with no other option but to raise prices in spite of a stiff competition in the car market.
Maruti last raised prices on some of its models by up to Rs 12,000 on February 1 this year to help offset higher costs.
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