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Old 19th February 2014, 09:24   #76
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Benefits on tax reductions would take some time to pass on to the customers because..

Excise duty cut may be taxing for auto companies stuck with inventory and most likely manufacturers having to swallow the financial liability of dealers stemming from unsold inventory.

This is because excise is levied at the factory gate but dealers don't have any option but to charge the reduced price from customers.
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A senior Maruti Suzuki executive said the company will likely take on the
financial burden of its dealers as it did in 2008, when a similar excise cut was made to boost demand following the global financial crisis. "It is a regular practice as done in the past," the executive said. "The company most likely will take the financial liability into its books as dealers are not in a position to absorb such a large financial burden
Quote:
Companies such as Maruti Suzuki, Honda Cars India and Volkswagen are working out the new rates, two-wheeler company suzuki Motorcycle India has started selling its bikes and scooters at reduced prices.
http://economictimes.indiatimes.com/...w/30644113.cms

Last edited by volkman10 : 19th February 2014 at 09:26.
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Old 19th February 2014, 10:03   #77
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by RSR View Post
Across the industry, the excise reduction would kind of take the prices back to what they were in December last year, as most manufacturers raised prices in January of this year stating the usual reasons (or excuses).
Thanks for this input.

For the record, I do not feel that we have been ill treated by the Hyundai people.
The car we bought was an Oct 2013 model. We had checked the VIN before purchase along with various other things and were completely satisfied with everything.
The discounts and other benefits offered to us have been quite substantial.
The price offered for the old car was very good.
No regrets with the purchase at all. The car is a fully loaded version with all the stuff that we wanted. My parents are happy and that is absolutely all that matters in this case.

I am glad that Hyundai will also have a benefit by this excise duty cut. It would be nice for the prices to hit December 2013 levels again and continue in that vein for this year as well. It will only stimulate some number of consumer conversions, which is a positive thing.
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Old 19th February 2014, 10:18   #78
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

I have been on the look out for a Diesel Hatchback since the last two months. So I had been to Trident Hyundai, Bangalore to TD the Grand i10. The same SA who helped me out with the TD that day called me up yesterday telling me that the excise duty has been slashed by 4% and the prices will come down from today i.e 19/2/14. On asking how much reduction will be there on the Gi10, he told me that there will be about 10-15k reduction.
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Old 19th February 2014, 11:31   #79
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Originally Posted by fazonater1911 View Post
I have been on the look out for a Diesel Hatchback since the last two months. So I had been to Trident Hyundai, Bangalore to TD the Grand i10. The same SA who helped me out with the TD that day called me up yesterday telling me that the excise duty has been slashed by 4% and the prices will come down from today i.e 19/2/14. On asking how much reduction will be there on the Gi10, he told me that there will be about 10-15k reduction.
Hey..thats good. Unlike car dealers who are more than happy to not inform customers. I am yet to hear from my M&M dealer whom I was booking my XUV from..I read in TOI today that Hero and Honda have slashed prices in 2 wheeler segment.
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Old 19th February 2014, 11:53   #80
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

As of now, following companies have already announced the price cut and have updated the price lists of most of their vehicles.

1) Nissan (Full 4% has been passed on to customers)
2) Mercedes
3) Audi
4) Maruti
5) Honda 2 wheeler
6) Hero Motocorp
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Old 19th February 2014, 12:02   #81
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by TSIched'Out View Post
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!

Thanks for sharing that excel. Although I think there are quite a few fixed costs which wont change irrespective of excise drop (Dealer's margin, Freight etc) still good directional numbers.

Going by this excel the price reduction for "Sedans" is close to 3.2%.

Also, depending on how much Dealer stock each automaker is carrying this % might go down even further. Considering that All companies will have to offer the excise reduction on the cars which had already been billed (Excise not refundable) and that cost would somehow be recovered to balance the price reduction I expect atleast 2.5% to 2.9% reduction on sedans.
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Old 19th February 2014, 12:49   #82
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by shankar.balan View Post
Thanks for this input.

For the record, I do not feel that we have been ill treated by the Hyundai people.

The discounts and other benefits offered to us have been quite substantial.
The price offered for the old car was very good.
No regrets with the purchase at all. The car is a fully loaded version with all the stuff that we wanted. My parents are happy and that is absolutely all that matters in this case.
You're welcome!

Sometimes, we do miss out (or gain from, if we're lucky) narrowly on the timing of such unexpected price cuts (or raises). But it is completely beyond our control.

Take us, for instance. We took delivery of our i20 Asta petrol on Monday, on the day the reduced excise slabs were announced. The car was getting registered on Monday morning and by the time the budget announcement came in the afternoon, the registration process was completed and the life-tax paid (based on the invoice with February prices). It appears that we missed the price cut by just a few hours.

I don't think it would have made a big difference. We were anyway going for the lone 2013 MY car left in stock with extra discounts offered by the dealer, instead of a 2014 MY car.

Would we have got a better price if we had waited? Theoretically maybe, but not really. Even now, the quantum of price reduction has not been announced by Hyundai. So we would have had to wait for a few more days. Then again, there is the possibility they may not have offered the same price reduction on the 2013 MY cars left in stock (since someone, either Hyundai or the dealer, has to bear the differential in excise duty already paid). If we had waited till Hyundai announced the price reduction, the lone 2013 Asta petrol left in stock may have been bought by someone else, and so on.

Just like you, we don't have any regrets at all, and believe we got a fair and transparent deal from Hyundai and the dealer.

I hope the refined and loaded i20 Asta petrols are able to provide a great ownership experience and keep both of us happy for a long time to come.

Last edited by RSR : 19th February 2014 at 12:50.
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Old 19th February 2014, 13:01   #83
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by ajay_satpute View Post
As of now, following companies have already announced the price cut and have updated the price lists of most of their vehicles.

1) Nissan (Full 4% has been passed on to customers)
2) Mercedes
3) Audi
4) Maruti
5) Honda 2 wheeler
6) Hero Motocorp
Any price cuts announced for Celerio ?
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Old 19th February 2014, 13:14   #84
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Today, I visited a Honda showroom near my house. The difference in attitude between the one at Tolichowki (yesterday) v/s Tarnaka (today) was immense.

There wasn't a soul to attend to the customer (me). After a few seconds had passed unattended, I looked at some random guy with a register in his hand. He asked me what I wanted with a head-nod and seemed totally disinterested when I asked about the price cuts. He looked towards a staff member and said "Ask him".

The staff member who was standing, did not budge, and asked from where he stood what I wanted. I walked over and asked the same thing. He looked at his phone like I didn't exist and said "Dealers don't know when to start offering the new prices." That's it! He didn't care why I stepped in or bother to write down my details as a potential customer.

I very well know which showroom (maybe even a different brand) to go for my purchase.
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Old 19th February 2014, 13:28   #85
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by hellmet View Post
Today, I visited a Honda showroom near my house. The difference in attitude between the one at Tolichowki (yesterday) v/s Tarnaka (today) was immense.

There wasn't a soul to attend to the customer (me). After a few seconds had passed unattended, I looked at some random guy with a register in his hand. He asked me what I wanted with a head-nod and seemed totally disinterested when I asked about the price cuts. He looked towards a staff member and said "Ask him".

The staff member who was standing, did not budge, and asked from where he stood what I wanted. I walked over and asked the same thing. He looked at his phone like I didn't exist and said "Dealers don't know when to start offering the new prices." That's it! He didn't care why I stepped in or bother to write down my details as a potential customer.

I very well know which showroom (maybe even a different brand) to go for my purchase.
Magnum Honda had put up a stall at Office today. I asked the guys on the new pricing and they said its not yet available and it would take another day.
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Old 19th February 2014, 13:40   #86
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Unhappy Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by DCEite View Post
Any price cuts announced for Celerio ?
Yes price cuts have been announced for all Maruti Suzuki models including the newly launched Celerio.

The price cut will be in the range of 12000-15000. This has been informed to me by my dealer Varun Motors at Hyderabad. The new updated price list should be out by end of day today.

But the bad news is that Maruti Celerio has now waiting periods in the range of 4-6 months and even the people who have booked this car even before its launch(which includes me) have been informed by dealers of shortage of some part which is to be procured from Italy for this car. I was shown some mails being circulated to all maruti suzuki dealers from the regional manager for Maruti Suzuki (AP) of this news.

Hence at the moment every dealer is expected to get not more than 1-2 cars for the next 2 months and hence the delay.
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Old 19th February 2014, 14:42   #87
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

VW Mount road informed me that they expect the new price list to be out in 2-3 days and VW will pass on most of the benefits of this cut. I was told to expect a 4-6% cut on the ex-factory cost of vehicles. On the exact amount there was no claity yet but there will be a reduction of 30-50k on vento Tsi.
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Old 19th February 2014, 14:51   #88
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Quote:
Originally Posted by hellmet View Post
Today, I visited a Honda showroom near my house. The difference in attitude between the one at Tolichowki (yesterday) v/s Tarnaka (today) was immense.

I very well know which showroom (maybe even a different brand) to go for my purchase.
Hellmet, this is the usual treatment any person gets across Honda dealers. A similar experience I faced with the Pratul Honda guys at Kothaguda cross roads sometime back. These guys are least bothered about customer service and treat customers as if they have come to buy vegetables.

However, this trend I see most with the Senior/Old dealers especially Pratul.
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Old 19th February 2014, 15:15   #89
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Default Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Update on Excise Duty Pricing

Just received word from both dealer and Manager at Honda that prices will be reduced from 17K to 25K depending on variant, which is not the whole 4% according to me but still its something I guess.

The same will be confirmed to us by evening and this will roll out publicly I am guessing from tomorrow.

Honda as I understand have not invoiced any cars since yesterday and will start today. Preexisting stock will also be covered under this reduction.

One more thing as the sticker price goes down so does the Registration amount and the Insurance. Please check if they have reduced yours. They were reluctant to reduce insurance for us but when we threatened to walk away they complied.
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Old 19th February 2014, 17:33   #90
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Exclamation Maruti, Hyundai cut prices after excise duty reduction

Maruti, Hyundai cut prices after excise duty reduction
By PTI | 19 Feb, 2014, 05.06PM IST

NEW DELHI: The country's biggest car makers, Maruti Suzuki and Hyundai Motor India, today cut prices after excise duty on automobiles was reduced in the Interim Budget. While MSI's price cuts range between Rs 8,502 and Rs 30,984 across its models, Hyundai has slashed prices by between Rs 10,000 and Rs 1,35,300.

The entire benefit of the excise duty cut is being passed on to customers for the full range of models, MSI said in a statement. Hyundai Motor India Ltd (HMIL) also said customers would get the full benefit of the excise duty reduction. The price cut applied to all the models, from Eon to Santa Fe.

http://economictimes.indiatimes.com/...w/30679370.cms

Last edited by ravradha : 19th February 2014 at 17:33. Reason: formated
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