Tata Motors Passenger Vehicles Ltd.

Tata Motors, country’s largest car maker is likely to increase the prices of commercial and passenger vehicles in proportion to the hike in the excise duty with immediate effect.

In the budget petrol and diesel vehicles having length exceeding four meters and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27%, instead of the earlier 22% and a fixed duty of Rs 15,000. Finance Minister also hiked basic customs duty to 75% from 60% for fully imported vehicles with FOB value more than $40,000 and with engine capacity of over 3,000 cc and 2,500 cc for petrol and diesel driven vehicles.

The company’s consolidated net profit rose by 40.49% to Rs 3,406 crore for the fiscal third-quarter ended December 31, 2011 from Rs 2,424.38 crore a year ago. Total income increased by 43.95% during the quarter under year review at Rs 45,260.26 crore against Rs 31,441.54 crore in the October-December quarter last fiscal.