Toyota Kirloskar brings good news for car buyers despite infra cess

Budget 2016 made cars expensive than before by imposing the new infra cess. An additional cess has been introduced on luxury cars (Rs 10 lakh range), high end capacity cars and SUVs.

But cars billed on or before February 29 would be charged as per pre-Budget price. Toyota Kirloskar Motor's Innova and Fortuner will see a Rs 45,000 and Rs 80,000 mark-up, respectively. N Raja, senior VP & director marketing, Toyota Kirloskar Motor told TNN: "As the implementation of the new cess (excise tax) was made applicable for cars billed from our factory from March 1, we expect our dealers to be charging our customers as per pre-Budget price for cars that were billed on or before February 29 from our plant."

Maruti Suzuki spokesperson told TNN the existing stock at the dealer end will be sold at pre-Budget prices.. However, Maruti's inventory levels at the dealer end is "very thin" partly because it retailed 96,000 units in February.

Others like Hyundai are leaving it to the dealers to take a call on the pricing of old stock.

"From today to March 31, stocks will fly and most dealers will be in a stock out position by the end of the month. March should see at least 6-7 per cent growth if not more but this is simply preponing of demand so April will see a 15-20 per cent hit," Ashok Khanna, senior executive VP and business head, vehicle loans, HDFC Bank told TNN.

Besides, VAT also increases from 14 per cent to 15.1 per cent which will also make a difference."

Honda will announce its new price list on Wednesday and will charge both old and new stock the same.

(Image credits: indiatimes)