Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 10th December 2012, 14:27   #1
Distinguished - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Kanpur
Posts: 7,159
Thanked: 3,752 Times
Default Southeast Asia-sourced spare part prices to drop

Tariffs from ASEAN countries are set to drop. This may impact spare prices in a big way.

http://economictimes.indiatimes.com/...w/17550373.cms
sgiitk is online now   (2) Thanks Reply With Quote
Old 10th December 2012, 14:37   #2
Senior - BHPian
 
9thsphinx's Avatar
 
Join Date: Oct 2008
Location: Ahmedabad
Posts: 1,042
Thanked: 441 Times
Default re: Southeast Asia-sourced spare part prices to drop

As long as they are passed down to the end consumer, this is good news. But it's all a wait and watch show, since news don't necessarily reflect to actual changes being made immediately in a real-life scenario!
9thsphinx is offline   (1) Thanks Reply With Quote
Old 10th December 2012, 14:50   #3
BHPian
 
arup.misra's Avatar
 
Join Date: Jun 2011
Location: Mumbai
Posts: 651
Thanked: 293 Times
Default re: Southeast Asia-sourced spare part prices to drop

Aren't a lot of spares localized? Atleast that is the impression I got. If they do import certain key parts is the volume(s) big enough for them pass on the costs down the chain. They still have to contend with INR fluctuations.
arup.misra is offline   Reply With Quote
Old 10th December 2012, 15:34   #4
Awaiting Email Confirmation
 
Join Date: Aug 2006
Location: Hyderabad
Posts: 531
Thanked: 350 Times
Default re: Southeast Asia-sourced spare part prices to drop

I read the complete article and these are some important points.
"Automakers were reeling under a hike in prices on five occasions in 2012"
what are the 5 Occasions? I am sure that one of them will be our Budget

"Carmakers such as Toyota, Honda, Suzuki, Ford and Nissan are likely to be the key beneficiaries when the lower tariffs kick-in."
So cheaper spares for only few companies. Spares of Skoda,VW, Hyundai will remain the same.

"The tax will be halved to 5% from January onwards, from the existing 10%. The tax would finally be eliminated when total exemptions under the Indo-Asean free trade agreement (FTA) for these critical parts take effect in December 2013."
So, As of now, the new spares price will be marginally cheaper. There will not be a significant change. Assuming the price of brakepads is 2600. The tax amount would be 260. Now it would be 130. Effectively, price comes down by 130/-

Last edited by gemi_kk : 10th December 2012 at 15:35. Reason: Modifying for better visibility.
gemi_kk is offline   (2) Thanks Reply With Quote
Old 11th December 2012, 11:44   #5
BHPian
 
CoolFire's Avatar
 
Join Date: Sep 2009
Location: Trichur, Kerala
Posts: 261
Thanked: 106 Times
Default Re: Southeast Asia-sourced spare part prices to drop

Quote:
Originally Posted by gemi_kk View Post

"The tax will be halved to 5% from January onwards, from the existing 10%. The tax would finally be eliminated when total exemptions under the Indo-Asean free trade agreement (FTA) for these critical parts take effect in December 2013."
So, As of now, the new spares price will be marginally cheaper. There will not be a significant change. Assuming the price of brakepads is 2600. The tax amount would be 260. Now it would be 130. Effectively, price comes down by 130/-
On the pricing of end consumers in immediate future, I second the view above.

It could be good for profitability of companies concerned. And that too with companies with significant import content. In the future more companies may use their ASEAN bases to supply parts to India. All in all, may have positive impact on consumers too in the longer run.
CoolFire is offline   Reply With Quote
Old 11th December 2012, 14:26   #6
BHPian
 
Join Date: Mar 2012
Location: Mumbai, MH
Posts: 499
Thanked: 177 Times
Post Re: Southeast Asia-sourced spare part prices to drop

From a broader perspective, I see this as a welcome change. For one, as the MD of Toyota says, it will immediately improve bottomlines for car cos. which have come under considerable pressure lately.

Also since the act covers most major components as the article mentions, I expect the effects would be quite pervasive. Please remember the tax would be eliminated completely when the Indo-Asean FTA takes effect in December 2013. So that will be a watershed moment. Who knows, it may force the Europeans also to price their cars competitively.

Ultimately as Honda has said, if it is looking to pass on the lower tariff benefits to customers and if other car-makers follow their lead, ultimately it will only benefit the end consumer.
Omtoatom is offline   Reply With Quote
Old 11th December 2012, 17:10   #7
BHPian
 
arpanjha's Avatar
 
Join Date: Apr 2006
Location: Kolkata
Posts: 165
Thanked: 36 Times
Default Re: Southeast Asia-sourced spare part prices to drop

Speaking in a different sense, I have a question to some senior BHP-ians, will this in any way affect the domestic vendors, or spare manufacturers? I guess this import is done more because the domestic market cannot suffice the car makers with good quality, or with sufficient volumes. So, will this have a negative impact on local manufacturers?
arpanjha is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Planning for a trip to Southeast Asia naveenvenkatesh Route / Travel Queries 11 1st August 2016 11:17
India's Coffee Day Rally to be a part of 2015 FIA Asia Cup Aditya Int'l Motorsport 0 6th January 2015 19:01
Huge price drop on Mitsubishi Spare Parts reignofchaos Technical Stuff 65 3rd January 2015 01:37
Mahindra unveils (navistar-sourced) 7.2L 6 cylinder diesel engine! 880 NM of torque GTO Commercial Vehicles 45 12th January 2010 11:46
Pajero prices drop tsk1979 The Indian Car Scene 16 22nd September 2006 10:47


All times are GMT +5.5. The time now is 10:43.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks