After increase in tax, automakers raise prices of high-end vehicles
By Express News Service | Published: 15th September 2017 12:51 AM |
CHENNAI: Carmakers have finally started raising prices of large and high-end automobiles, passing along the increased tax burden on mid-sized, large and SUV models. On Thursday, Honda Cars India announced that it has raised the prices of its sedan City and utility vehicles BR-V and CR-V.
Honda was preceded by fellow Japanese carmaker Toyota, who announced on Wednesday that it was increasing prices across a range of models. The increase in prices comes in the wake of the GST Council deciding to increase GST compensation cess on large cars and SUVs by 2%, 5%, and 7% depending on engine size and segment.
Honda Cars has begun charging the revised prices from September 11, with model wise increases ranging up to nearly Rs 90,000. Prices of the City are up by Rs 7,003 to Rs 18,791, the BR-V by Rs 12,490 to Rs 18,242 and the CR-V by Rs 75,304 to Rs 89,069.
Toyota for its part, has said that the approximate price increase in Delhi for Innova Crysta will be up to Rs 78,000, for Fortuner up to Rs 1,60,000, Corolla Altis up to Rs 72,000 and Platinum Etios up to Rs 13,000.
The price of hybrids and small cars, however, remains unaffected post the cess hike. According to experts, other automakers are likely to announce more revised price lists to pass along the increased tax burden to their consumers. “Apart from luxury players, those with a higher share of large cars in their portfolio are likely to be impacted by the cess hike, with higher prices affecting demand,” said a senior auto analyst.