The price revision comes in an effect of tax increase in Union Budget 2016-17
In an attempt to cope up with the tax increase in Union Budget 2016-17 Volvo Auto India has revised the prices of their cars in India, which applies to all the models offered in the country by the Swedish luxury automaker. Due to this revision some models get pricier by up to Rs. 2.33 lakh, while some of the models come cheaper by up to Rs. 3.04 lakh.
Volvo has increased the ex-showroom prices of the cars by 3 per cent. Due to that, the models like S60 sedan, XC60 and XC90 SUVs, luxury hatchback V40 come pricier. The models are now priced between Rs. 25.49 lakh to Rs. 80.23 lakh (ex-showroom Delhi). Price hike ranges between Rs. 68700 to Rs. 2.33 lakh. Apart from the price hike Volvo Auto India has reduced the price of some models as well. The price reduction comes ranging between Rs.24000 to Rs. 3.04 lakh. Models like S60 Kinetic, S60 Momentum, and V40 Cross County D3 come with reduced price. Not only the Volvo, but many other automakers have already increased the prices of their model ranges.
Volvo cars are just the addition to the list. In the Union Budget 2016-17 presented by finance minister Arun Jaitley a 2.5 per cent cess was proposed on diesel vehicles under 4 metres of length and engine capacity under 1500 cc. While the larger engine capacitated cars, SUVs and larger sedans were slapped with an extra cess of 4 per cent. Apart from this, an extra 1 per cent cess was imposed on the petrol, LPG and CNG cars which come with a length below 4 metres and an engine capacity under 1200 cc. Beside that Arun Jaitley also proposed 1 per cent tax on purchase of luxury cars priced above Rs. 10 lakh. In the wake of the extra cess imposition car makers like Hyundai, Honda has increased the prices across their model range.