These price modifications is due to increased costs of On Board Diagnostics and additional freight charges which has made it mandatory for the auto companies to pass on these additional costs to consumers.
All Honda vehicles will be increased by upto 2%, while Hyundai have only announced price hikes without indication of any percentage increases. Mercedes Benz India has announced an increase that ranges from 1% – 4% for their locally assembled cars, and a 20% hike on completely built cars
These price hikes come close to price hikes announced earlier this year when auto makers hiked prices across range citing rising input costs and currency fluctuations. Post budget 2013, the price of SUVs are also set to increase as excise duties have been hiked from an earlier 27% to a current 30% making price hikes mandatory.
Mr. Eberhard Kern, Managing Director & CEO, Mercedes-Benz India commented, “There are several factors that have put significant pressure on our bottomlines. Rising input costs and volatile exchange rates have impacted us; while the recent changes in import duty structure and increase in relevant taxes have put significant stress on our business. We have absorbed a portion of the impacts but to retain business viability, we are forced to pass on a part of this burden to the consumers”.