Bigger cars all set to become more expensive with additional excise duty

Indian government has announced an additional excise duty which would make bigger cars more expensive.

This additional duty is applicable on cars above 1500cc engines. Cars between 1500-1999cc now attracts an additional duty of Rs. 15,000. Cars with engine larger than 1999cc would attract a duty of Rs. 20,000.

Incidentally, this is in addition to the existing regular excise duty of 24% on all large cars.

Looks like the government wants to discourage buying larger cars which tend to consume more fuel per kilometers. Sadly, the government could have enforced this additional duty based on fuel consumption of the vehicles.

This is going to hurt companies which manufacture bigger cars like Honda, Audi, Mercedes, Skoda etc.