Following the hike in the excise duty from 8% to 10% as proposed by the Finance Minister Pranab Mukherjee in his budget speech for the fiscal 2010-11, Indian auto majors including Maruti Suzuki India and Hyundai Motors India are planning to pass the burden on the shoulders of the consumer.

While the rise in the excise duty is still acceptable as compared to 4% relief given by the Government last year as the part of the stimulus package, South Korea based Hyundai is planning to raise its prices to the tune of almost Rs. 6,500 to Rs. 25,000 on an average.

Similarly, market leader Maruti Suzuki will be passing on the proposed 2% rise on to the consumers. However, keeping in mind the squeezing margins and intense competition in the Indian automotive market, market watchers are claiming the decision as a wise move as it help the automakers to stay afloat in the Indian market.

Meanwhile, players like General Motors India and Volvo Cars India have followed the suit and most of the automakers will operate with a new price list effective 27 February 2010.