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Old 18th February 2014, 08:32   #46
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Quote:
Originally Posted by aniketi View Post
Can somebody confirm please : This duty cut is applicable from 1st April 2014 or with immediate effect? I am not sure about it. Please confirm. My friend want to buy vehicle immediately and he is happy if he can save some money
If I read right, for all cars that leave from the factory today onwards.

A snapshot from The Hindu on what we can expect from this tax cut.
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Budget 2014 - Car prices to come down due to reduction in Excise Duty!-1010090_10152390499198054_589331030_n.jpg  

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Old 18th February 2014, 08:35   #47
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

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Originally Posted by jkdas View Post
If I read right, for all cars that leave from the factory today onwards.

A snapshot from The Hindu on what we can expect from this tax cut.
Please check this post (Honda City : Official Review) by me on other thread as well. The reduction might be applicable for cars in transit as well.
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Old 18th February 2014, 11:29   #48
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

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Originally Posted by volkman10 View Post
Audi, Mercedes lower prices up to Rs 3.82 lakh on excise cut.
Both these brands had upped their prices by a quite nice margin in January 2014. No wonder they made announcements passing on benefits to the customers immediately while other manufacturers are still left scratching their heads!!

And obviously an election stunt since from where we where in December, its just a roll back and not a real decrease!!
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Old 18th February 2014, 11:56   #49
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Will this benefit somebody who has already booked the car and the vehicle is in the dealer yard pending registration? Not sure if the company/dealer will pass on the benefit in this case? Can somebody please help in understanding this?
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Old 18th February 2014, 11:58   #50
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Visited a Honda 2 Wheelers showroom to enquire about the excise duty cuts. None of the floor staff have been informed about the cut and they learned about it from me. I asked them to call me once they know something. Will keep you posted.
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Old 18th February 2014, 12:01   #51
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Post Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

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Originally Posted by patil View Post
Well I am the happiest person if the tax structure was based on fuel efficiency and pollution levels. But its not the case.

...
So the classification of the vehicles itself is wrong.
Quote:
Originally Posted by Maverick79 View Post
Completely agree on our goverments in-ability for not providing good/ drivable roads across the country.

...
Most of the other SUV's/ MUV's fall under the low F.E category only(Around 10kmpl irrespective of their pricing).
Sedan based MUV's like Ertiga/ Enjoy are again a different league though.

Quote:
Originally Posted by neel911 View Post
Please check this post (Honda City : Official Review) by me on other thread as well. The reduction might be applicable for cars in transit as well.
I understand from the reports (and I also spoke to a Toyota Dealer executive yesterday) that MUVs like Innova fall under the 27% to 24% (3% reduction) bracket.
  • I feel this is a little unfair while comparing with SUVs which fall under 30% to 24% (6% reduction) bracket.
  • While the huge variation in % reduction (for SUVs 6%, for MUVs only 3%) is one thing to complain about, the factor that after the change both the SUVs and MUVs will fall in the same 24% bracket is another.

Was this a conscious decision or did they miss the plot?

Thanks,
C_
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Old 18th February 2014, 12:27   #52
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

It appears that Duster may be cheaper by Rs. 60,000 in Delhi, if the company decides to pass the excise benefits.
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Old 18th February 2014, 12:51   #53
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Quote:
Originally Posted by aniketi View Post
Can somebody confirm please : This duty cut is applicable from 1st April 2014 or with immediate effect? I am not sure about it. Please confirm. My friend want to buy vehicle immediately and he is happy if he can save some money
This is w.e.f midnight of 17-02-2014.
Whether the manufacturer will pass on the benefit to the customer is another story altogether. You should definitely ask for the reduction.

Quote:
Originally Posted by neel911 View Post
Please check this post (Honda City : Official Review) by me on other thread as well. The reduction might be applicable for cars in transit as well.
Certainly not, as the ED is paid at the time of removal from the factory.
However, the manufacturer may still decide to pass on the benefit for all purchases after a certain date. In that case the manufacturer absorbs the differential duty impact.


Quote:
Originally Posted by Parth46 View Post
Will this benefit somebody who has already booked the car and the vehicle is in the dealer yard pending registration? Not sure if the company/dealer will pass on the benefit in this case? Can somebody please help in understanding this?
Strictly speaking the ED on the car lying in the dealer yard has already been paid. However, the manufacturer may decide to pass on the benefit to all cars invoiced w.e.f. a certain date. You should certainly ask for the reduction and if necessary wait for some days to get the reduction.
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Old 18th February 2014, 13:16   #54
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Can anyone please come up with a list of popular vehicles pre budget prices and post budget prices so that we can have an idea of the actual reductions in the prices.
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Old 18th February 2014, 14:22   #55
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by Maverick79 View Post
Consider avg F.E of any small car as 18 kmpl with petrol.
Consider avg F.E of an avg SUV as 8 kmpl on diesel.
Now compare the amount of pollution they make.
The double impact of using a more polluting fuel( diesel) along with lesser F.E in SUVs is the major factor asking for this 3X duty. One more effort to save the environment by discouraging these highly polluting vehicles on roads.
I'd love to know in which exact & same driving conditions does a B segment hatchback (e.g. Swift petrol, i20 petrol) provide 18 kpl and a popular SUV (e.g. Scorpio) 8 kpl? These numbers are misleading.

Fact:

1. The concept of SUVs = Gas guzzlers came up in the - you guessed it - USA. And rightly so, considering the 8 cylinder petrol motors & 2500 - 3000 kilo kerb weights of popular gargantuan models.

2. In India however, no car will ever become popular if it's a petrol gas guzzler. Hence, the models that make up for over 90% of SUV sales here are driven by economical 4-cylinder diesels. A Mahindra Scorpio that gives 11 - 12 kpl can hardly be called a "gas guzzler". TSK's Safari 4x4 gives him 11 in the city, am certain that a 4x2 will be even better. Heck, these SUVs are more fuel efficient than some C2 segment sedans.

3. The new breed of monocoque SUVs - EcoSport, Duster, Terrano - do as good as their sedan counterparts on fuel efficiency.

NOTE: There is no successful petrol SUV on sale in India.

Therefore, lets please drop the "SUVs are gas guzzlers" line. It isn't relevant to India at all.

Quote:
Originally Posted by hellmet View Post
None of the floor staff have been informed about the cut and they learned about it from me.
Man, could they have been anymore disinterested in their profession? The biggest news of the day that affects their product directly, and they don't have a clue . Were they sleeping on the job?
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Old 18th February 2014, 15:56   #56
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

As per data from sales the figures for Car Sales were disappointing in 2013.
Hope there would be a climbing graph this year!
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Old 18th February 2014, 16:20   #57
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Here's an excel to quickly calculate the tentative reduction in on road prices. The illustration assumes petrol hatch with Factory Assessed cost of Rs. 5 Lacs. 4% excise reduction translates in to 3.61% reduction in On Road Price. You can do your own math for the target model.
This is assuming entire reduction is passed onto the end customer.
And Excise duty is payable the moment goods leave the factory. So its already paid for in-transit/cars already invoiced to the dealers by the manufacturers.
Cheers!
Attached Files
File Type: xlsx ED Reduction.xlsx (11.8 KB, 554 views)
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Old 18th February 2014, 17:18   #58
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Mod Note : There are several spelling & grammatical errors in your posts. This negatively affects the forum experience for other readers.

Kindly ensure that you proof-read your posts prior to submission. Also, it would be a good idea to use spell-checkers.

Last edited by GTO : 19th February 2014 at 11:07.
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Old 18th February 2014, 17:54   #59
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

With immediate effect Honda has slashed prices for the Dream Neo by Rs 1,600 and the CBR250R by as much as Rs 7,600
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Old 18th February 2014, 18:05   #60
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Yesterday I went to a Maruti Suzuki dealership to check out the new Celerio.

The sales executive told me that they officially haven't received any word from the company regarding any price cuts.

If the companies don't pass on the benefits to the end consumer,then it just wont do any good for the current state of the auto market.
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