In the wake of increased taxes introduced in the 2016 Union Budget, General Motors is hiking the prices of its vehicles by as much as Rs 51,000
Following in the footsteps of most car manufacturers in the country that have increased the prices of their vehicles across the board, General Motors have announced its own price hike with effect from today. Depending on the model and variant, Chevrolet automobiles will now be costlier by anywhere from Rs 3,500 to Rs 51,000.
The Union Budget 2016, announced by Arun Jaitley, brought with it new tax levies on the automotive industry, including infrastructure cess on many categories of vehicles. In his Budget speech, the Finance Minister stated that the government would levy 1 percent infrastructure cess on small petrol and CNG cars, 2.5 percent on diesel cars and 4 percent on SUVs and other luxury cars. There would also be a 1 percent service charge on purchase of luxury cars that cost over Rs 10 lakh and 4 percent additional levy on high-capacity passenger vehicles and SUVs.
American company General Motors sells its products in India under its Chevrolet sub-brand in a wide range of categories, from the Beat hatchback to the Trailblazer SUV, and at prices ranging from Rs 4.28 lakh to Rs 27 lakh (ex-showroom Delhi). All vehicles will be subject to the price hike from today, however, GM is still retaining the price of its entry-level LT variant of the new Cruze sedan at Rs 13.95 lakh (ex-Showroom, Delhi).
“We are undertaking price adjustments on the entire range of Chevrolet vehicles due to the increase in cess and additional luxury tax announced in the Union Budget 2016. The amount ranges from INR 3,500 to INR 51,000 depending upon the model and the variant. The revised prices will be applicable from today across our range,” said Hardeep Brar, Vice President – Sales, General Motors India.
“As part of our commitment to provide customer delight to New Cruze customers, we are retaining the strategic price positioning of its entry-level LT variant at INR 13.95 lakh (Ex-Showroom, Delhi). The New Chevrolet Cruze 2016 augments its position as the most compelling proposition in this price range,” he added.
General Motors to Hike Prices Across Models