Automakers to pass the increase in exercise duty to customers

Automakers to pass the increase in exercise duty to customerThe automakers in the county are likely to pass on the burden of a hike in excise duty on all products by the government to the customers and might announce a price rise across product offerings soon.

Companies including Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India might be planning to increase product prices by the exact amount of the hike.

Maruti Suzuki India Managing Executive Officer for Marketing and Sales, Mayank Pareek said that the company will pass on the entire additional excise duty to the customers and is calculating the exact amount of the hike.

Mahindra & Mahindra also said that it would introduce a price hike in its product offering in the market to compensate for the hike in excise duty, that was announced by the government as part of the \Budget for 2012-13, Mahindra & Mahindra President for Automotive and Farm Equipment Sector, Pawan Goenka said that the hike was expected but the industry is not happy about it and will try to deal with the increase.

Honda Siel Cars India Senior Vice President for Sales and Marketing, Jnaneswar Sen announced that the price of all locally produced cars will be increased due to the duty hike.

General Motors India Vice President P Balendran agreed with his industry peer and said that his company will also increase prices for its products in the country.