Auto major Tata Motors today said it will increase the prices of its vehicles

RELATED ARTICLES Tata Motors hikes prices by up to Rs 12,000 Import duty cut to hinder industry growth: Tata Motors Mercedes-Benz opposes higher excise duty on diesel cars Tata Motors sales up 16% in January No change in EMIs, banks to have more funds

following the Government's decision to increase central excise duties to 10 per cent, a top company official said.

The Government today hiked excise duties by 2 per cent to 10 per cent on all non-oil products as a part of withdrawal of stimulus measures with Finance Minister Pranab Mukherjee saying the economy was on the path of recovery.

"Following the excise duty hike by the Finance Minister in the budget, we may hike prices by up to Rs 60,000 to Rs 70,000 for heavy vehicles and Rs 5,000-Rs 6,000 for smaller vehicles," Tata Motors Managing Director, India Operations, P M Telang told reporters here.

"Any fiscal duty changes by the Government, we pass on to consumers," Telang said.

Though the auto industry did not like the idea of excise duty going up, the Finance Minister had to do the balancing act somewhere, he said.

Price increases are determined by various factors like commodity prices, which have to be watched very closely, he said, adding a hike in steel and rubber prices is also a cause concern.