Tata hikes prices of passenger cars by upto INR 35,000

Owing to the 2016-17 Budget that proposed an infrastructure cess, Tata Motors has increased the prices of its passenger vehicles by upto INR 35,000 with immediate effect. This move has taken place to offset the impact of infrastructure cess.

The burden of additional tax has been passed on to the consumer.

“In line with the cess levies from the Budget announcement, we are increasing the prices of our passenger vehicles with immediate effect,” a Tata Motors spokesperson said.

The increase in the passenger vehicles will be in a range of about Rs 2,000 to Rs 35,000, based on the exact cess amount for the specific category, as per the spokesperson. Tata Motors sells a range of passenger cars, right from the ntry-level small car Nano to premium crossover Aria, priced between INR 2.2 lakhs and INR 16.5 lakhs (on-road, Mumbai).

It was decided by the government to impose 2.5 per cent cess on diesel vehicles of 4 metre length and engine capacity not exceeding 1,500cc, while higher engine capacity and SUVs and bigger sedans have been charged with a cess of 4 per cent on the value of the car.

 These are over an above a cess of 1 per cent on petrol/ LPG/CNG driven vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,200cc.

Tata is about to launch its new hatchback – Tiago and the budget will affect the price of this car too.