Maruti Suzuki
Maruti SuzukiMaruti Suzuki

Maruti Suzuki, the country's largest car maker, has increased the prices of its models in India by up to Rs 34,494 to offset the impact of the infrastructure cess on automobiles.

The quantum of the price hike will vary depending on the model and will be in the range of Rs 1,441 to Rs 34,494 (ex-showroom). However, the prices of the Smart Hybrid models of the company such as Ciaz SHVS and Ertiga SHVS will remain the same, as they are exempted from the infrastructure cess.

The hike comes after Finance Minister Arun Jaitley announced Monday, Feb.29, in Budget 2016 that the government would levy Infrastructure tax on all four-wheelers. Jaitley has proposed to levy 1 percent additional infrastructure tax on small petrol and CNG cars and 2.5 percent on diesel cars. The government also proposed 4 percent infrastructure cess on SUVs and other luxury cars.

Following the announcement, many auto makers like Tata Motors, Hyundai and Mercedes-Benz have already decided to pass on the additional duty to customers. While Tata Motors and Hyundai car prices will be increased by up to Rs 35,000 and Rs 80,000 respectively, Mercedes-Benz has increased the prices by up to 5 percent. Other car-makers are expected to soon follow suit.

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