Last week’s Union budget turned out to be a big letdown for the Indian car industry, as you can see in our report. This was especially the case for SUV manufacturers. The proposal to raise excise duty on SUVs from the current 27 per cent to 30 per cent has thrown the industry that's already struggling, into an even tougher spot.
But if you have been planning to buy an SUV for sometime now, we’d suggest you giddy-up and put your money on one immediately. Mahindra dealers across Delhi/NCR have informed us that the prices of the popular XUV 500 could shoot up between Rs 50,000-80,000, depending on the variant, as soon as the budget proposals are implemented. Dealers tell us that even if you are planning to finance your car then you will need to spend around Rs 2,000 extra per month on a three-year loan.
Delaers of luxury brands like Audi and BMW which saw a lot of sales traction thanks to affordable SUVs, tell us that it would be safe to expect a minimum price hike of atleast Rs 1 lakh on their entry level compact SUVs. The top versions could even cost a bigger chunk, closer to Rs 3 lakh or maybe even more.
Time to tear open that money mattress and get that SUV, eh TopGearheads?