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Tata Motors to hike prices of vehicles; stk up-news18032012

Monday, March 19, 2012

Tata Motors rose by 2% and touched the day's high of Rs292.40 on the BSE.

Within hours of the Budget 2012 presentation, Tata Motors decided to increase the prices of commercial and passenger vehicles with immediate effect.

Tata Motors said in a statement that the company has decided to increase the prices in proportion to the hike in the excise duty.

Earlier, Mercedes Benz India also announced that it will hike prices by up to Rs3 lakh, expressing disappointment over high duties imposed in the Budget.

'The Budget is very disappointing. We were hoping for some reduction in taxes for large vehicles instead of hike,' Mercedes Benz India Director (Corporate Affairs and HR) Suhas Kadlaskar said.

Finance Minister (FM) Pranab Mukherjee announced that the petrol and diesel vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27%, instead of the earlier 22% and a fixed duty of Rs15,000.

Besides, the FM also hiked basic customs duty to 75% from 60% for fully imported vehicles with FOB value more than $40,000 and with engine capacity of over 3,000 cc and 2,500 cc for petrol and diesel driven vehicles.

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