The excise duty hike in the Budget has had an immediate impact on the auto sector with major auto-makers, including Tata Motors, Maruti Suzuki, Hyundai, Honda and General Motors, announcing plans to hike prices of vehicles by up to Rs 41,000.
Two-wheeler makers like Hero Honda and TVS Motors also followed suit by announcing rise in prices of their models.
The country's largest auto-maker Tata Motors said it will increase prices of its vehicles following the increase in excise duty to 10 per cent, its managing director for domestic operations PM Telang told reporters on the sidelines of its Q3 results announcement in Mumbai today.
"Following the excise duty hike in the Budget, we may hike prices by up to Rs 60,000-70,000 for heavy vehicles and Rs 5,000-6,000 for smaller vehicles," Telang said, adding "any fiscal duty changes by the government, we pass on to consumers."
Car leader Maruti Suzuki also hike the prices of its models between Rs 3,000 and Rs 13,000 (ex-showroom, Delhi) from midnight tonight.
Hyundai Motor India also said it will increase prices between Rs 6,500 and Rs 25,000. Honda Siel Car said it will also hike prices by Rs 13,000 to Rs 41,000 from tomorrow.
General Motors said prices of its models will go up by Rs 6,200-22,000.
In the two-wheeler segment, the largest player Hero Honda said it will hike prices by Rs 500-1,500 across all models.
The Chennai-based TVS Motors said prices of its models will go up between Rs 350 and Rs 1,200.