Mercedes to hike prices

To hike prices by Rs 2 lakhs-Rs 3 lakhs
Luxury car maker, Mercedes Benz India, has expressed disappointment over high duties imposed in the Budget and announced that it will hike its product prices by up to Rs 3 lakh.
"The Budget is very disappointing for us. We were hoping for some reduction in taxes for large vehicles instead of hiking it further," Mercedes Benz India Director (Corporate Affairs and HR), Suhas Kadlaskar said.
The premium car makers usually bring in advanced technology in to the country and this step will be very counterproductive, he added.
"We are going to pass on the additional burden to customers. We have not decided the exact amount yet, but on an average it will vary between Rs 2 lakh and Rs 3 lakh," Kadlaskar said.
The decision comes with FM hiking the excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres to 24 per cent from 22 per cent and a fixed duty of Rs 15,000.
Besides, the basic custom duty is up to 75 per cent from 60 per cent for fully imported vehicles with FOB value more than $40,000 and with engine capacity of over 3,000 cc and 2,500 cc for petrol and diesel driven vehicles.