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Budget 2013 Comes Down Heavily on Luxury Cars & Imported Bik

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  • Custom duty on high-end cars increased from 75 to 100%
  • Custom duty on motorcycles above 800cc increased from 60 to 75%
  • Excise duty on SUVs increased from 27 to 30%

4thMarch 2013: India’s leading online marketplace for used cars and new cars, has given thumbs down to Budget 2013 that has let down the entire automotive industry with increased import duties on high end luxury cars and motorcycles. According to experts at, this along with an increase in excise duty on SUVs will hit the already crippling Indian passenger car industry in the months to come.

Luxury cars, with engine capacity of over 3000cc for petrol and 2500cc for diesel, that are imported into India as CBUs (completely built units) and have a combined CIF (cost, insurance, freight) of more than US$40,000 will now attract a 100% custom duty, up from the earlier 75%. This means that cars like the Audi A7 for example are expected to cost 12-15% or Rs. 8-10 lac more. Likewise, custom duty on motorcycles with engine capacity of over 800cc has been increased from the older 60 to the new 75%!

The industry is clearly not happy with this change and according to Michael Perschke, head, Audi India, this increase in duties for imported cars means the company will have to seriously evaluate the impact of this hike on the prices of their CBU models and will have no choice other than to pass on the increase to the customer. He adds that overall, it will have an adverse impact on automobile industry which is already going through a slowdown.

Bunny Punia, head of content at further adds, “If hindrances like rising fuel prices, increasing raw material costs and high interest rates weren’t enough, the industry now has to bear this new added weight of higher taxes. A typical SUV like the Duster will see a hike of Rs 15-20000 and shockingly, as per the government’s classification of a SUV, cars like the Maruti SX4 fall into this SUV category (engine capacity over 1500cc, ground clearance over 170mm, length over 4m). Thankfully, the government has not levied any extra taxes on diesel powered cars”. 

So if you are in the market looking at a high-end luxury car, a performance oriented high capacity motorcycle or a SUV, be ready to either shell out more, or let your dreams remain, well, dreams!

About The Company: is the leading online automotive marketplace bringing together car buyers and car sellers.  New car buyers can research their car purchase while used car buyers can browse through the largest collection of inventory online.  It is the best resource for new car research in India, providing users with information, opinions & tools to ease the process of finding a suitable car.’s used car marketplace is the best in online space with a comprehensively curated and photographed stock of used cars. It provides a transparent and reliable platform for used car listings with detailed information for used car buyers.


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