Tata Motors Limited, India’s largest automobile company, has decided to increase the prices of its commercial vehicles and passenger vehicles, with immediate effect, proportionate to the increase in the corresponding excise duty announced in the Union Budget on March 16th 2012.
Currently, large cars attract excise duty depending on their engine capacity and length. Today, while presenting the union budget 2012-2013 in Lok Sabha, Union Finance minister Pranab Mukherjee said that the excise duty which is presently taxed at 22 percent will be enhanced to 24 percent. The excise duty on cars which is currently taxed at 22 percent with an additional charge of Rs. 15,000 per vehicle would increase to 27 percent.
Tata Motors is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s third largest bus manufacturer.