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Old 16th March 2012, 15:21   #31
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

I just read in the ET that Maruti, Honda and M&M have already announced a hike in the price of the cars (applicable to both petrol and Diesel models). More manufacturers to follow.

The exact increase would be know in the next few days.
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Old 16th March 2012, 15:24   #32
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by GenuineOptimist View Post
This is not correct.. For length > 4000 and CC > 1500, the duty increases from 22%+15k to 27%.

Here is the explantory notes from Central Excise department after Budget. Available at http://indiabudget.nic.in/ub2012-13/...xplanatory.pdf


87.3. Excise duty on petrol driven cars with length exceeding 4000mm and engine capacity under 1200 cc is being increased from 22% to 24% and on petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1500 cc from 22% + Rs.15,000 to 27% [S.No. 284 of Notification No. 12/2012-CE dated the 17th March 2012 and clause 141 read with the Seventh schedule refers]
This is bad news!! A Honda city V(with sunroof) currently cost 9.5 lakhs ex showroom(Goa). After this budget its going to cost about 30+k more!!
Also the just launched fiesta Automatic which cost 9.7 lakhs ex showroom(Goa) might go above the 10lakh mark! people in Karnataka mostly will surely suffer more due to the higher road tax on cars above the 10lakh mark!!!!

Last edited by rambo1o1 : 16th March 2012 at 15:25.
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Old 16th March 2012, 15:34   #33
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

This whole tax the rich nonsense is a bit too much in our nation, I am not rich and neither do I represent the rich, but why is it that in a near capitalist country like ours the whole blame and the burden falls on the so called rich.

Traffic cops will never target auto's or rickshaws or other such disposed driving such dangerous contraptions, instead car drivers are fined and judged for every small error they make on the roads.

Also why are high customs duties charged to products which were deemed luxury maybe 30 to 40 years ago but are a down right necessity in today's time.

Being a car forum let me give a car example, why should some one pay two to three times the price of say a car like the Montero just because its an import.

In all this mess, I guess the biggest gainer is the Indian Government, and no I dont mean the UPA alliance, all of them are the same in my eyes. These people are still trying to hide under the ROTI, KAPDA, MAKAAN way of doing things and amassing tons of wealth for themselves.

Instead of paying up from its own coffers and curbing corruption, the government again tries to charge it on the tax payers.

When will this damn burden end, will no one stand up and question the way things are done in our country, I dont mean an Anna Hazare style movement, but something more consequential.
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Old 16th March 2012, 15:41   #34
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by mohandas View Post
What will be the duty increase for the following cars:
i. ANHC
ii) Etios (P)
iii) Nissan Sunny (P)

All three are > 4000 mm but engine wise < 1500 cc
Will those attract 24% or 27% ?
For >4000 and <1500CC, the excise duty is raised from 10% to 12%.
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Old 16th March 2012, 15:51   #35
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by GenuineOptimist View Post
For >4000 and <1500CC, the excise duty is raised from 10% to 12%.
Is this over and above the 22% to 27% hike?? Which category does the New Honda city fall in??I am a bit confused

Last edited by rambo1o1 : 16th March 2012 at 15:54.
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Old 16th March 2012, 15:53   #36
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

By what date will this increase in excise duty be applied from? Will it be from tomorrow onwards or its from April 1.?
(Sorry I am on my mobile phone and I am not able to browse through the article)
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Old 16th March 2012, 16:03   #37
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by GenuineOptimist View Post
For >4000 and <1500CC, the excise duty is raised from 10% to 12%.
I think that's not correct. It was 22% before not 10%. Only cars which are <4000 mm were on 10% bracket.
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Old 16th March 2012, 16:13   #38
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by mohandas View Post
I think that's not correct. It was 22% before not 10%. Only cars which are <4000 mm were on 10% bracket.
Exactly. That was the reason Maruti snipped the New DZire - to fall under the 10% excise category.

For >4000mm, the excise duty is now at least 24%, higher value with the engine. I don't think any auto manufacturer in India is currently in a position to absorb this hike in duty.

For me, this makes it the choice easier (or thats what I would like to believe) by widening the gap between Sunny D and Rapid D further, and takes the latter beyond my reach. Would love to have Skoda launch a Raaaapid, and I'll stretch my budget
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Old 16th March 2012, 16:16   #39
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

So I saved about 30 grand by buying my Cruze in Feb. Not as much as I thought it would be, but not bad either.

I'm quite surprised, to be honest. With all the posturing and rhetoric that happened for months I though they would definitely go ahead with a much large excise hike on diesel cars. Not a flat rate, but based on engine capacity or OTR of the car. I wonder what prompted the u-turn.
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Old 16th March 2012, 16:18   #40
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Quote:
Originally Posted by GenuineOptimist View Post
87.3. Excise duty on petrol driven cars with length exceeding 4000mm and engine capacity under 1200 cc is being increased from 22% to 24% and on petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1500 cc from 22% + Rs.15,000 to 27% [S.No. 284 of Notification No. 12/2012-CE dated the 17th March 2012 and clause 141 read with the Seventh schedule refers]
I think there is a mistake in this government release. Shouldn’t it be "petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1200 cc" and not 1500 CC. So if thats a mistake then to summarize the following would be the changes which should be in effect from April 1?? or tonight??
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Old 16th March 2012, 16:21   #41
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

As received from GM. Very sensible note:

Quote:
BUDGET REACTION OF MR. LOWELL PADDOCK, PRESIDENT AND MANAGING DIRECTOR OF GENERAL MOTORS INDIA

It is a populist budget. Having said this, focus on infrastructure, education, skill development, agriculture, irrigation and health care is encouraging news. But the corporate sector expected at least retention of the existing excise tax structure for the growth of the auto sector as it started slowing down during the last one year due to high interest rates, fuel prices, commodity prices, negative market sentiments etc.
As far as the automotive industry is concerned, it did not meet the expectations. The industry did not expect any increase in excise duty on passenger cars. In fact, the industry expected the government to announce some other measures to fuel demand of vehicles which have also not happened. This was essential as the automotive industry makes a significant contribution to the growth of the economy which continues to remain sluggish.

Some of the other announcements made by the finance minister for the manufacturing sector, R&D activities, hybrid vehicles, skill development etc should help enhance the competitiveness of Indian industry and generate employment opportunities. Similarly the concessions announced for environment friendly vehicles should help promote usage of green technology. These proposals, if implemented effectively, should have a positive impact on the industry and the economy as a whole going forward. The challenge now is the implementation of the key economy boosting proposals announced in the budget. Our hope is that the market will respond favorably.

Lowell Paddock
President & Managing Director
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Old 16th March 2012, 16:24   #42
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Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by CRtorquefan View Post
Petrol & diesel may gets expensive as Excise duty is up by 2%.
The excise duty increase is not applicable to the oil sector.

On fuel prices, the government has set a subsidy target of 2% for the year, which is not possible at the current rate of subsidy. There are going to be some tough decisions that will have to be taken to increase fuel prices.

In short taxes have been increased all round, the income tax exemption upto 2L, a piddly increase of just Rs.20K will be more than recovered with these tax increases all around (service tax is also up 2% to 12%).

In effect one is definitely going to see increased expenditure across the board, save for some items like LCD/LED TV's and probably mobile phones.

Last edited by fiat_tarun : 16th March 2012 at 16:26.
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Old 16th March 2012, 16:27   #43
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Budget has been good considering the way all the hoopla was going about diesel car price hike by 80K+. But in the end even petrol cars are having a rise in excise duty which shouldn't have been the case. Diesel car sales will go rocket high and petrol car sales will further dive south. God save Honda!
Quote:
Originally Posted by Wall-e View Post
So if thats a mistake then to summarize the following would be the changes which should be in effect from April 1?? or tonight??
The effect should be from tonight as the manufacturers have started hiking prices across various segments.
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Old 16th March 2012, 16:43   #44
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

The diesel Figo Titanium model will be dearer by Rs 20,000 from April 1st, per my colleague who's booked one.
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Old 16th March 2012, 16:50   #45
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Default Re: The 2012 Budget and its effect on the Indian Car Scene

Does the state government road tax indirectly affect as well? In TamilNadu for instance, 10% and 15% road tax is applied for cars costing less than 10 lakhs and 10+ lakhs segments. If a car costs marginally below 10L before the budget, it'll easily go beyond 10L and attract 15% road tax then. Am I right?
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