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


Closed Thread
 
Thread Tools Search this Thread
Old 1st March 2013, 11:42   #106
Distinguished - BHPian
 
karan561's Avatar
 
Join Date: Aug 2006
Location: Mumbai
Posts: 3,749
Thanked: 9,167 Times
Default Re: Budget 2013 & The Car Industry

This budget clearly indicates it is not a good time for imported cars(CBUs) in India.

+ adding to the fire the resale value of the premium cars / super cars will go up too, so people who were looking forward to buying an 2nd hand vehicle would also start to face the music from their 1st owners or the irritating dealers/middlemen.

Regarding the hike on SUV prices;

I think previously FM was only suppose to target the "Diesel" SUVs but with this move he has shown some equality

Last edited by karan561 : 1st March 2013 at 12:11.
karan561 is offline  
Old 1st March 2013, 12:03   #107
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 11,883
Thanked: 9,702 Times
Default Re: Budget 2013 & The Car Industry

Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.

The imported car duty is a killer. However Mercedes and BMW are not that badly affected as the S class and soon the 7 are assembled in India. I would expect a shortage of Q3's until production actually started.

Am sure the fat cats wil lobby the government to reduce the duty revision
ajmat is offline  
Old 1st March 2013, 12:08   #108
BHPian
 
shabash's Avatar
 
Join Date: Sep 2008
Location: Bangalore
Posts: 92
Thanked: 56 Times
Default Re: Budget 2013 & The Car Industry

I am there goes my dream of owning a decent SUV by another inch or two. Wait does that matter? No it does not. My dear FM you can't deter me from buying my favorite SUV no matter what you do

Note from the Team-BHP Support Team: Please take the time to use proper punctuation as per Team-BHP rules. Avoid...typing...like...this.

Last edited by Rudra Sen : 1st March 2013 at 12:24.
shabash is offline  
Old 1st March 2013, 12:16   #109
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,769
Thanked: 1,162 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by ajmat View Post
Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.
The only issue is base or mid level model SUVs which were earlier <10lakhs ex showroom will now breach that mark and then trigger a higher road tax component as well. Which means, the impact to the customer is not just the excise duty increase ( which anyway is at an ex-works price ) but on the road tax as well. Both put together will badly hurt sales.
narayan is offline  
Old 1st March 2013, 12:30   #110
Senior - BHPian
 
Join Date: May 2006
Location: Pune
Posts: 1,077
Thanked: 639 Times
Default Re: Budget 2013 & The Car Industry

http://www.moneycontrol.com/news/bus...70.html#toptag

Quote:
The country's largest car maker Maruti Suzuki India (MSI) today reported 7.89 per cent decline in its total sales at 1,09,567 units in February 2013.

The company had sold 1,18,949 units in the corresponding month last year, MSI said in a statement. In February this year, MSI had recorded domestic sales of 97,955 units compared to 1,07,653 units in the year-ago period, registering a fall of 9.01 per cent, it added.
The budget surely isn't going to make it any better.
Nilesh5417 is offline  
Old 1st March 2013, 12:31   #111
Team-BHP Support
 
Vid6639's Avatar
 
Join Date: Jul 2006
Location: Bangalore
Posts: 14,467
Thanked: 19,372 Times
Default Re: Ford EcoSport Preview @ Auto Expo 2012. EDIT : Indian Spy Pics on Pg. 33

The Times of India wrongly mentioned Civic as falling into SUV category because of ground clearance. The Civic GC as stated by Honda is 170mm (from brochure and website). Only if it's greater than 170mm will it now be a SUV.

The Altis on the other hand is 175mm.
Vid6639 is offline  
Old 1st March 2013, 12:38   #112
Senior - BHPian
 
lurker's Avatar
 
Join Date: Jun 2006
Location: Tura
Posts: 1,308
Thanked: 641 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by aroop View Post
From the Maruti stable, the only victims are SX4, Kizashi and the Grand Vitara, none of which bring home any appreciable numbers. Maruti might as well consider them as showpieces.

The Ertiga just missed being a victim owing to its smaller engine.
Kizashi ground clearance is 145 mm, so it escapes.
lurker is offline  
Old 1st March 2013, 14:27   #113
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,641 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by ajmat View Post
Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.

The imported car duty is a killer. However Mercedes and BMW are not that badly affected as the S class and soon the 7 are assembled in India. I would expect a shortage of Q3's until production actually started.

Am sure the fat cats wil lobby the government to reduce the duty revision
I wonder how is the EU going to take this. India and EU have been in talks for long now. EU gives certain benefits to Indian made cars under some rule regarding "products from developing countries". As a result they expect something back. Now with duty increase, the FTA is going to be in a bigger mess.
tsk1979 is offline  
Old 1st March 2013, 14:38   #114
BANNED
 
Join Date: Jan 2007
Location: Bathinda, Pb
Posts: 167
Thanked: 84 Times
Default Re: Budget 2013 & The Car Industry

from the above discussion it is clear that all those personal vehicles which attracted excise of 27% will now get 30% excise. So it also includes any sedan whose petrol engine is above 1.2l and diesel engine above 1.5l.
So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive
Dr.Abhi is offline  
Old 1st March 2013, 14:41   #115
BHPian
 
aroop's Avatar
 
Join Date: Mar 2008
Location: Kolkata
Posts: 125
Thanked: 19 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by lurker View Post
Kizashi ground clearance is 145 mm, so it escapes.
My bad. Thanks for pointing it out. I have been thinking like the people in the ministry: tax the bigger and expensive
aroop is offline   (1) Thanks
Old 1st March 2013, 14:44   #116
BHPian
 
sukhoi30's Avatar
 
Join Date: Feb 2013
Location: Mumbai
Posts: 329
Thanked: 386 Times
Default Re: Budget 2013 & The Car Industry

My take on this ...

1. Of late there has been a mushrooming of SUVs on Indian roads. Most of them diesel driven. Given the pressure on the Govt to reduce the subsidy on Diesel, the FM has increased the ED very marginally and only on SUV type vehicles. Anyone buying a SUV for around 10 - 20 Lakhs can surely pay up a little more.

2. SUVs do take up lot of parking and road space. But this reason cannot be for the increase. By that measure, Buses and Trucks take much more space :-) ... Anyway, FM did not want to convey that this is being done to reduce diesel dependent vehicles. Imagine, if he had raised it for all diesel driven vehicles ... The entire automobile industry would be going out of Indian market.

3. Defining an SUV is a bit tricky. I guess, a seven seater car with no boot could be safely called an SUV. Govt should come up with a clear definition to implement this in the right way. Otherwise, dealers can make a good profit by misinforming customers.

4. Taxis which are SUVs are exempted presumably to safe guard many transport companies providing Qualis, Bolero, Innova etc. as an alternate mode of transport.
sukhoi30 is online now  
Old 1st March 2013, 15:27   #117
BHPian
 
Join Date: Nov 2009
Location: chandigarh
Posts: 370
Thanked: 48 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by Dr.Abhi View Post
from the above discussion it is clear that all those personal vehicles which attracted excise of 27% will now get 30% excise. So it also includes any sedan whose petrol engine is above 1.2l and diesel engine above 1.5l.
So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive
For petrol engines too 1.5 litre and above gets charged 27% (now 30%)and between 1.2-1.5 litre has 24% and below 1.2 and less than 4 meters has 12% excise duty.
rock75 is offline  
Old 1st March 2013, 15:35   #118
BHPian
 
Sommos's Avatar
 
Join Date: Jun 2012
Location: Bhilai, CG.
Posts: 984
Thanked: 674 Times
Default Re: Budget 2013 : SUVs & CBUs more expensive

Quote:
Originally Posted by Dr.Abhi View Post
So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive
Quote:
Originally Posted by sukhoi30 View Post
Defining an SUV is a bit tricky. I guess, a seven seater car with no boot could be safely called an SUV. Govt should come up with a clear definition to implement this in the right way. Otherwise, dealers can make a good profit by misinforming customers.
Every thing is not written in the FM's budget speech.
The clarifications come through the Gazette Notification, which is already published and quoted by member Sarthak Gupta at post 56.

Quote:
Originally Posted by sarthakgupta View Post
Following is the new definition of SUV according to GoI:

"Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.
Explanation. - For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm and above."
As of now the intrepretation is that all the three conditions are to be fulfilled and as per the notification the shape has nothing to do with the ED rate. But GTO is coming up with some further clarifiaction on the issue that should clear all the doubts.
Sommos is offline  
Old 1st March 2013, 15:36   #119
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,641 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by sukhoi30 View Post
My take on this ...

1. Of late there has been a mushrooming of SUVs on Indian roads. Most of them diesel driven. Given the pressure on the Govt to reduce the subsidy on Diesel, the FM has increased the ED very marginally and only on SUV type vehicles. Anyone buying a SUV for around 10 - 20 Lakhs can surely pay up a little more.
The question is not about paying a little more. Its about fairness. Why should a sedan owner driving a car costing the same, with similar fuel efficiency, and same size pay less.
You do not make arbitrary laws. Laws have to be fair and based on logic, not on whim. Whimsical laws are those which lead to downfall of empires - See this
http://en.wikipedia.org/wiki/Muhammad_bin_Tughluq
tsk1979 is offline   (3) Thanks
Old 1st March 2013, 15:42   #120
Senior - BHPian
 
lurker's Avatar
 
Join Date: Jun 2006
Location: Tura
Posts: 1,308
Thanked: 641 Times
Default Re: Budget 2013 & The Car Industry

Quote:
Originally Posted by tsk1979 View Post
I wonder how is the EU going to take this. India and EU have been in talks for long now. EU gives certain benefits to Indian made cars under some rule regarding "products from developing countries". As a result they expect something back. Now with duty increase, the FTA is going to be in a bigger mess.
If the EU agreement finalizes, it would come under a special import regime and unlikely the general one. My strong instinct is that this tax on SUV's etc will go away next year because the auto lobby in India isn't insignificant and when the Euro free trade comes into affect it would again need a rationalization in taxes across board. The next Govt will have to bite the bullet and take the final call on the Euro free trade agreement excepting which Indian exports to Europe will also be made uncompetitive by imposition of additional EU anti-dumping taxes. And this tax on SUV's is basically the 'diesel vehicle tax' they were talking all along because all the popular models of UVs are diesel except for say a CRV or an Outlander who just happen to be unfortunate, at wrong place and wrong time.
lurker is offline  
Closed Thread


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
10 lakh budget. New car, used car or wait and increase budget? Tejas@perioimpl What Car? 59 2nd May 2014 12:03
2013 outlook for the "Auto Part Supplier" Industry GTO The Indian Car Scene 3 12th July 2013 07:42
Budget'08 Impact for Auto Industry keyank The Indian Car Scene 6 13th February 2008 16:32


All times are GMT +5.5. The time now is 19:58.

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