Tata Motors Passenger Vehicles Ltd.

Due to hike in excise duty in the Budget, Auto major Tata Motors has increased prices of its passenger vehicles, including the Nano, by up to Rs 35,000. In passenger cars, the increase will vary between Rs 2,000 and Rs 8,000 depending upon various models.
Under the passenger car division, the company sells small car Nano, hatchback Indica series and Indigo family of sedans. The company, however, did not specify the model-wise breakup of the price increase. In case of utility vehicles like Safari, Aria and Sumo, the hike will be from Rs 8,000 to Rs 35,000.

Finance Minister Pranab Mukherjee had proposed to raise excise duty to 12% from 10%. The excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from the previous 22% with a fixed duty of Rs 15,000.

Besides, basic customs duty was also hiked to 75% from 60% for fully imported vehicles priced over $40,000 and with engine capacity of over 3,000 cc and 2,500 cc for petrol and diesel driven vehicles respectively.

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.