The hike in excise duty on cars announced in Friday's budget is likely to impact car sales in the State only lightly, according to stakeholders.
The two per cent tax hike will affect companies that import components. Companies that import cars as completely built units (CBUs) and as parts (to be assembled in India) too would be affected.
Cars manufactured in India and those that use mostly indigenous components will be relatively less affected. But there will be a nominal increase in price alongside the post-budget increase in price of the more costly variants.
A spokesman for a luxury car dealer said the hike will only have a minimal impact on sales since the price of the brand's base model, priced around Rs.25 lakh, would go up by about Rs.60,000 (including the to-be-hiked showroom price and the subsequent hike in road tax and insurance).
The customers of upper models that are imported as CBUs will have to pay more, but they are not generally price conscious, he said.