Bigger cars to cost more now

Cars like Mahindra Bolero, Scorpio, Honda’s Accord and Civic and Toyota Innova are set to become costlier. The government on Friday announced an increase in excise duty on large cars, multi-utility vehicles and sports utility vehicles to discourage fuel guzzlers on the road. The excise duty has been increased by up to Rs 20,000.This duty is imposed on vehicles with engine capacity more than 1500 cc, used mostly by affluent sections of the society. “These would now be chargeable to a specific rate of duty in addition to the existing ad valorem rate of 24 per cent,” said a statement from finance ministry.For cars, MUVs and SUVs of engine capacity ranging from 1500 cc to 1999 cc, a specific duty of Rs 15,000 per unit has been imposed. For those having an engine capacity of 2000 cc and above, the specific duty is Rs 20,000 per unit. There is no change in the duty applicable to cars of engine capacity up to 1500 cc. This means prices of small cars like Maruti 800, Alto, WagonR, Hyundai Santro, i10 and Tata Indica will not be affected.For market leader Maruti, only one of its cars, Maruti SX4, will face increased excise duty of Rs 15,000. In Hyundai, Verena (petrol) and Getz could attract Rs 15,000 excise duty. General Motors’ Tavera will be Rs 20,000 costlier. Prices of luxury cars from BMW, Mercedes and Ford will also be effected