After Tata Motors announced a price hike across its complete range earlier this week, Hyundai India has followed suit and released the new prices in accordance with the new tax structure that was announced in this year's Union Budget. The price hike spares no vehicle in the Korean car maker's model range starting at Rs. 2,889 for the entry-level Eon hatchback, going up to Rs. 82,906 for the range-topping Santa Fe SUV.
Also Read: Tata Motors Hikes Car Prices Across Range in India by Up to Rs. 35,000
Reacting to the new taxation policy, a Hyundai spokesperson has said that "The surcharge levied on cars over Rs. 10 lakhs coupled with the infrastructure cess at varying rates will increase the cost of acquisition. The auto industry is hopeful of early introduction of GST (Goods and Services Tax) and merging of all taxes for a simplified tax structure."
The 2016 Union budget announced new taxes for all cars and SUVs. Petrol and CNG powered small cars with an engine capacity of 1200cc now attract an infrastructure cess of 1 per cent, while small diesel cars with an engine capacity not exceeding 1500cc attract a cess of 2.5 per cent. Similarly, cars and SUVs with 'high capacity' engines will attract an additional cess of 4 per cent. The Finance Minister also announced a luxury tax of 1 per cent on cars priced over Rs. 10 lakh, in addition to the infrastructure cess.
The price hike is a serious damper for prospective car buyers this year, but should not be seen as a major deterrent when it comes to car buying decisions. The new tax policy will also see manufacturers work around avoiding, at least, the luxury tax levied on cars priced over Rs. 10 lakh. So, one can expect quite a few sub Rs. 10 lakh variants popping up soon.
As for Hyundai, the car maker is definitely in a fix, especially with its next premium offering the Tucson SUV witnessing an unprecedented price hike before launch scheduled later this year. Apart from Hyundai and Tata, Honda is expected to announce a hike soon across its complete range, while we will see other manufacturers coming forward as well soon with revised prices.
Also Read: Budget 2016 - Woes for Passenger Vehicle Industry
2016 Hyundai Cars Price Hike:
1) Hyundai Eon - Rs. 2,889
2) Hyundai i10 - Rs. 3,848
3) Hyundai Grand i10 - Rs. 4,286
4) Hyundai Xcent - Rs. 4,726
5) Hyundai Elite i20 - Rs. 4,886
6) Hyundai i20 Active - Rs 5,857
7) Hyundai Verna - Rs. 5,677
8) Hyundai Elantra - Rs. 45,044
9) Hyundai Creta - Rs. 27,192
10) Hyundai Santa Fe - Rs. 82,906
