Print Edition - 2015-01-02 | MONEY
Cars to become dearer in domestic market
Jan 1, 2015-
As automakers in India prepare to hike prices after the Indian government discontinued excise duty facilities, four-wheelers will become expensive in the Nepali market too, domestic auto dealers have said.
Excise duty on cars in India would go back to 12 percent, while that on big sedans and SUVs would return to 24 percent and 30 percent, respectively, according to media reports. And, carmakers like Maruti, Hyundai and Ford, among others are planning to raise the prices by IRs 5,000-25,000.
The domestic dealers said increased production costs would intimately be passed on to the customers. Vehicles from several foreign brands sold in Nepal are manufactured in India.
Siraj Pant, deputy general manager of marketing, sales and strategy at CG MotoCorp—authorised distributor of Maruti Suzuki—said new models would come with increased costs.
“If the price increases in India, it would affect the Nepali market too. However, vehicles that have already been imported will not be expensive,” he said. CG MotoCorp plans to launch the Maruti Suzuki Ciaz and Swift facelift this year.
Rupesh Sharma Bhatta, deputy general manager at Laxmi Intercontinental, the authorised distributor of Hyundai, said they haven’t received any notice from the company, but said: “The cost here will depend on the decision of Hyundai India.” Laxmi will launch the ix25 compact SUV and Elite i20 hatchback this year.
Ford’s distributor GO Automobiles said it has already received confirmation from the manufacturer on price hike. “The company plans to raise the price by around 2 percent, so we can assume Ford cars would be costlier by up to Rs 100,000,” said Sunil Chhetri, deputy general manager.
Ford will roll out the Figo sedan by mid-2015.
Gopi Neupane, general secretary of the Nepal Automobiles Dealers Association (Nada), said manufacturers see no alternative to hiking prices as the cost of raw materials has increased.
Prabin Khatiwada, head of passenger cars at Sipradi Trading, authorised distributor of Tata, however, said they have no plan to hike the price any time soon.
Published: 02-01-2015 09:47