The excise duty hike introduced in the 2012 budget will surely result in the hike of the prices of the new two wheelers. The basic excise duty has been hiked from the 10% to 12% in union Budget 2012. This will surely give a bad effect in the sales also.
Manufacturers fear that new hike will slowdown the growth in two wheeler segment which has been already tapered in recent months. India's largest scooter manufacturer, HMSI has already increased its Activa model price by Rs. 826-996.
Similarly the motorcycles prices have also been increased in the range of Rs. 883 to 3,400 by HMSI. The company still has not taken decision with regards to CBR150R which it has just launched in the Indian market.
TVS Motors has also follow the same path of HMSI and confirmed that it will increase its two wheeler prices with respect to hike in excise duty. The scooter range will see rise of Rs. 780 to 900 while the motorcycle range will see price hike of Rs. 780 to 1,580.
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