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Wednesday, March 9, 2016

2016-17 Union Budget - General Motors hikes car prices in India by up to Rs 51,000 Tuesday March 08,2016

General Motors India hiked prices of its entire vehicle range by up to Rs 51,000 in order to offset the impact of new levies proposed in the Union Budget 2016-17.

"We are undertaking price adjustments on the entire range of Chevrolet vehicles due to increase in cess and additional luxury tax announced in the Union Budget.
The amount ranges from Rs 3,500 to Rs 51,000 depending on the model and the variant," General Motors India Vice-President Sales, Hardeep Brar told

The revised prices will be applicable from Tuesday March 08,2016 across the entire range, he added.

"As part of our commitment to provide customer delight to new Cruze customers, we are retaining the strategic price positioning of entry-level LT variant at Rs 13.95 lakh (ex-showroom Delhi)," Brar said.

General Motors sells a range of vehicles, from entry-level model Beat to premium SUV Trailblazer, priced between Rs 4.28 lakh and Rs 27 lakh (ex-showroom Delhi)

The Finance Minister proposed a cess of  -

  • 1 % on small petrol, LPG and CNG cars
petrol/LPG/CNG driven motor vehicles of length not exceeding 4 meter and engine capacity not exceeding 1200cc would attract a cess of 1 %

  • 2.5 % on diesel cars of certain capacity
2.5 percent on diesel driven motor vehicles of length not exceeding 4 meter and engine capacity not exceeding 1500cc and

  • 4 % on other high-powered vehicles and SUVs.
higher engine capacity and SUVs and bigger sedans would attract a cess of 4 %

No credit of this cess will be allowed, and credit of no other duty can be allowed to pay this cess, he added.

"The pollution and traffic situation in Indian cities is a matter of concern. I propose to levy an infrastructure cess of 1 percent on small petrol, LPG and CNG cars, 2.5 percent on diesel cars of certain capacity and 4 percent on other high engine capacity vehicles and SUVs," Jaitley said while unveiling the Budget 2016-17 in Lok Sabha

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