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Old 22nd July 2007, 11:43   #13 (permalink)
coolspeed
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Join Date: Jul 2007
Location: chennai
Posts: 12
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There is almost an unanimous view that the pricing it very high. But just see this:

Ex showroom price of Fusion 1.6 = 5.76 L

At 24% excise duty, the cost pattern would be 4.65 L manufactured cost and 1.11 L excise duty.

With the modifications, being qualified for the concessional duty, the pattern would be (assuming same petrol engine) 4.65 L + 0.74 L duty = Rs Rs.5.39 L.

Since the modern diesels command a premium of 1 L over corresponding petrols 5.39 + 1 L = 6.39 L, which is approx the same as the pricing of Fusion Tdci. The excise benefit of around 37 K seems to have been passed on to the buyer.

Hence the case actually seems to one of correct pricing of the diesel variant but over the incorrectly overpriced petrol.
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