Union Budget 2012: Ford India head: Car prices to increase after budget

Ford's India unit will increase the prices of its cars as a result of a hike in excise duty announced in the country's federal budget on Friday, its president said in a statement.

"The announcement of a 2% increase in excise duty is disappointing and not favorable towards the auto industry," Michael Boneham, president of Ford India said.

"This will lead to increase in prices of our products and will have negative impact on consumer confidence."

Finance Minister Pranab Mukherjee said on Friday that excise duty on cars currently taxed at 22% would increase to 24%, and excise duty on cars currently taxed at 22% with an additional Rs 15,000 per vehicle charge would increase to 27%.