Daijiworld Media Network

Bengaluru, March 25: Citizens of Karnataka are in for another financial blow, as vehicle prices are set to escalate from April, adding to the growing list of price hikes that have already shaken the public. From everyday essentials to now vehicles, everything is becoming more expensive.

The Karnataka government has announced an increase in the cess starting from April, and coupled with rising import costs for steel and spare parts, this will lead to a significant surge in vehicle prices. As a result, from April 1, the price of both two-wheelers and four-wheelers will see a sharp increase, leaving many consumers grappling with the financial strain.

Representational image

Vehicle prices will rise by a substantial 3 to 4%, with some categories of vehicles witnessing price hikes as high as Rs 3,000 for two-wheelers. The price of autos could increase by Rs 5,000, making them even less affordable. Currently, an auto is priced at Rs 2,73,200, but this will rise to Rs 2,78,200 once the hike kicks in.

Similarly, cars are also set to get costlier, with an increase of around 2 to 3%. For example, a car that was priced at Rs 5 lac at the ex-showroom rate will now cost an additional Rs 15,000, while a Rs 10 lac car will see a rise of Rs 30,000.

The state government has already implemented an increase in cess from March, which has led to a Rs 500 increase on two-wheelers and Rs 1,000 on cars. This sudden rise in prices has raised concerns about a possible slump in vehicle sales, as consumers are expected to delay their purchases in light of the higher costs.

Ramakrishna Holla, president of the Karnataka State Taxi Owners Association, expressed his concerns, saying, "This price hike will definitely cause a slowdown in vehicle sales. People are likely to put on hold buying new vehicles."

With the April price hike looming, many potential buyers are rushing to book vehicles in March, fearing further price increases in the coming months. As the financial year ends, some buyers are also hoping for clearance offers, waiting to get the best deal before the new prices kick in.