General Motors India on Tuesday increased vehicle prices by up to Rs 61,000 in order to partially offset the impact of rising input costs and expiry of reduced excise duty concessions.
"The price hike on Chevrolet vehicles built in India ranges from approximately Rs 15,000 to Rs 61,000 depending upon the various models and variants with effect from January 2015," General Motors India Vice President P Balendran said in a statement.
The overall revision includes both the price increases on account of cost pressure and excise duty withdrawal by government which has been passed on to the consumer, he added.
The company has raised the prices of its entry level car Spark in the range of Rs 15,739 to Rs 18,300 and it will now cost between Rs 3,60,000 and Rs 4,18,000 (all prices ex- showroom Delhi).
Prices of Beat hatchback have been hiked in the range of 15,739 to Rs 18,300 and it will now be available for Rs 4,20,000 to Rs 6,28,000.
Further, prices of Sail hatchback have been raised in the range of Rs 20,458 to Rs 36,387.
It will now cost between Rs 4,66,000 to Rs 7,18,000.
Sail sedan has become dearer in the range of Rs 22,365 to Rs 35,820.
The model is now priced between Rs 5.49 lakh and Rs 8.05 lakh. Prices of Cruze sedan have been hiked in the range of Rs Rs 46,960 to Rs 55,561.
The model would now be available for Rs 14,26,000 to Rs 16,85,000.
The company has raised the prices of its multi purpose vehicle (MPV) Enjoy in the range of Rs 24,901 to Rs 35,319 and it will now cost between Rs 6,10,000 and Rs 8,62,000.
Prices of company's other multi purpose vehicle Tavera have been hiked in the range of Rs 24,799 to Rs 60,982.
The model would now be available for Rs 9,25,000 to Rs 11,29,000.
The price hike follows the government not extending excise duty concessions given to the auto industry after the expiry on December 31, 2014.
The government had extended the excise duty concessions by 6 months in June continuing the previous UPA government's decision to cut excise duty on cars, SUVs, two-wheelers and consumer durables in the interim Budget in February, 2014.
The excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 per cent from 12 per cent previously.
For SUVs, it was cut to 24 per cent from 30 per cent; for mid-sized cars, to 20 per cent from 24 per cent and to 24 per cent for large cars, from 27 per cent. From January 1, 2015, the higher rates are applicable.
Maruti Suzuki India Ltd, the country's top carmaker by volume, will increase car prices by 4 percent following the government's decision to halt tax breaks to automakers beyond Dec. 31, a company executive told Reuters on Tuesday.
A tax break was first granted in February last year to revive sluggish car sales and later extended until the end of 2014.
Automakers had been hoping the concession, amounting to 3-6 percent of the price of a car before the imposition of all duties, to continue in the new year.
"Whatever excise duty hike has happened from the government's side we are passing that on to customers," said R.S. Kalsi, executive director at Maruti, which is majority owned by Japan's Suzuki Motor Corp .
The company was planning to increase prices this year to offset rising input costs, but Kalsi said the decision has been deferred because higher excise duty rates have already pushed up prices and another hike would further impact the market.
(With inputs from Reuters)
