Maruti Suzuki, the country's largest car maker, said it will raise prices on its vehicles by up to Rs 34,494 to pass on the impact of infrastructure cess announced in the Union Budget.
Following the infrastructure cess on automobiles in the Union Budget 2016-17, ex-showroom prices of models would go up in the range of Rs 1,441 to Rs 34,494 across its models, the company said in a statement.
As Smart Hybrid models (Ciaz SHVS and Ertiga SHVS) are exempt from the Infrastructure Cess, there is no change in the prices of these models.
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More companies are likely to announce the price hike following the imposition of cess.
The industry is apprehensive that the price increase will moderate growth in sales of passenger vehicles.