Skoda Auto India today said it will increase prices across its entire model range by up to Rs 35,000 from March 1 to pass on the impact of custom duties announced in the Union budget. Also Read - Flipkart to acquire Rs 1,500 crore worth stake in Aditya Birla Group's Fashion retail
The company said afterwards it will increase prices in a phased manner to lower the overall impact of the customs duty hike over a period of time. Also Read - Micromax's comeback 'IN' series launch confirmed for November 3: What you need to know
“Effective March 1, Skoda Auto India will only increase prices by 1 percent which translates to an increase of Rs 10,000 to Rs 35,000 across the entire model range,” Skoda Auto India said in a statement. Also Read - LG Wing set to launch in India on October 28: All you need to know
It further said, “The multi-step price increase will range between 3 percent to 4 percent depending on the product and variant in the Skoda model range.” Skoda Auto sells a range of vehicles starting from mid-sized sedan Rapid priced with a starting price of Rs 8.32 lakh to SUV Kodiaq tagged at Rs 34.5 lakh.
In addition, the company said it has also introduced a loyalty bonus of up to Rs 50,000 for existing customers, who intend to purchase another Skoda product.
In the Budget for 2018-19, Finance Minister Arun Jaitley increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10 percent to 15 percent.
Further, duty on CBU (completely built units) imports of motor vehicles (trucks and buses) has been hiked from 20 percent to 25 percent.