Hyundai Motor India may raise vehicle prices if the excise duty rate on automobiles goes back to the levels before the interim budget in February, following the expiry of reduced rates on 30 June.
Excise duty on commercial vehicles, motorcycles, scooters and small cars was cut to 8% from 12%. It was reduced to 24% from 27% for large cars; 20% from 24% for mid-sized cars; and 24% from 30% for SUVs.
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Following the reduction in excise duty, most carmakers reduced prices but these may return to pre-interim budget levels after 30 June as, so far, the government has not extended the reduced rates.
Meanwhile, the budget is scheduled to be presented on 10 July.
A Hyundai spokesman told Press Trust of India: “In line with the same, if there is any government directive on increase in excise duty during pre-budget phase, we will comply with government notification which will then lead to increase in car prices.”
P Balendran, General Motors India vice president, said: “Since the auto sector refuses to show any improvement and continues to bleed despite the marginal excise duty relief… we expect the new government to continue with the excise duty cut not only till presentation of the budget but also going forward as well.”
