Also Read: Hyundai Announces Price Hike; Grand i10, Xcent Unaffected
Cars longer than 4 metres were to attract a 5 per cent increase in cess, taking the total tax exposure from 43 to 48 per cent. But Hyundai has decided to spare the Verna’s base model and is absorbing the cost of the cess hike. On most other variants the increase is at 2 per cent. Sources in the company say that this pricing is likely to stay in effect until the year-end – which also comfortably carries the company’s dealers through the festive season. The industry has been worried that price hikes of 5-7 per cent would see some slowing of growth usually seen at this time of the year.
In fact Hyundai has been generous with other models as well. While the smaller sub – 4 metres cars like the Eon, Grand i10 and most variants of the i20 did not get affected by the government’s decision anyway – even others like the Elantra and popular Creta see only marginal hikes being passed on despite a higher tax exposure now. The Creta being an SUV and above 4 metres in length, would otherwise have seen a hefty 7 per cent increase in prices. Instead Hyundai has only passed on 5 per cent to consumers