After Infrastructure Cess announcement in Union Budget 2016 – 17, HCIL announces price increase on the entire range from Rs.4000 to Rs.79000
Blame it on budget; all the automakers in India are increasing the prices again after the January hike. Honda Car India too has hiked the price of City sedan and other cars like Brio, Jazz, Amaze, Mobilio and CR-V. Surely a blow for those who are planning to buy new cars.
In the Union Budget 2016-2017 Finance Minister Arun Jaitley has levied a new tax of 1 per cent to 4 per cent on cars dubbed as “Infrastructure Cess”. Due to that the car prices are increasing 10 per cent to 35 percent. Honda Car India’s price hike across its range goes from Rs. 4,000 to Rs. 79,000 according to the models.
Honda Brio, which is the entry level hatchback in the company’s India line up gets pricier by Rs. 4,000 to Rs. 6,000. The Jazz comes next with a hike ranging between Rs. 5,000 – 19,500. The new facelift Amaze launched yesterday is priced between Rs. 5.29 lakh to Rs. 8.19 lakh (ex-showroom, Delhi). The pricing for the facelift Amaze already includes the infra cess. The City, which is a popular sedan in India gets pricier by Rs. 24,600 – 38,100. Honda Mobilio gets a hike ranging between Rs. 21,800 – 37,700. The Honda CR-V sitting at the top of the line up gets pricier by Rs. 66,500 – 79,000.
Earlier in January 2016, Honda Car India raised the price range for their cars by Rs. 2,000 to 10,000 showing the reason of rising input cost. Within a month another price hike will surely affect the sales for the brand.
| Model | Increase in Ex Showroom Price |
| Brio | 4,000 – 6,000 |
| Jazz | 5,000 – 19,500 |
| Amaze | Prices of new Amaze were announced on Mar 3, 2016 |
| City | 24,600 – 38,100 |
| Mobilio | 21,800 – 37,700 |
| CR-V | 66,500 – 79,000 |
What was the Union Budget proposal?
In the Union Budget 2016-2017 Finance Minister Arun Jaitley proposed to impose 2.5 per cent tax on diesel cars with a length within 4 metres and engine capacity within 1,500 cc. A tax of 4 per cent was slapped on the higher engine capacity cars like SUVs and larger sedans. Not only those. A 1 percent tax on petrol, LPG, CNG cars with length within 4 metre and engine capacity within 1,200 cc was also proposed. Well, the story doesn’t end here. Finance Minister also proposed to add a 1 per cent tax on purchase of cars priced above Rs. 10 lakh.
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