Country's leading automaker, Tata Motors has announced a price hike for its passenger vehicles in the country following changes in the taxing norms by the government.

"We have raised the prices as per the excise duty hike in the Budget. In passenger cars, the increase will vary between Rs 2,000 and Rs 8,000 depending upon various models," a Tata Motors spokesperson said.

The company has increased price of various models including Nano, by up to Rs 35,000 with immediate effect following the hike in excise duty in the Budget for 2012-13. the company offers small car Nano, hatchback Indica series and Indigo family of sedans under the passenger car segment in the country.

The increase for utility vehicles will be from Rs 8,000 to Rs 35,000, according to the spokesperson. The company will also increase the price of its commercial vehicle to pass on the burden of the two per cent additional excise duty announced by the Finance minister as part of the union budget that was tabled in the parliament on 16 Mach.

Most automakers in the county are likely to pass on the burden of a hike in excise duty on all products by the government to the customers. Companies including Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India might be planning to increase product prices by the exact amount of the hike.