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Old 17th February 2014, 12:19   #1
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Default Budget 2014 - Car prices to come down due to reduction in Excise Duty!

Friends,

Finally some good news to Auto manufacturers & us[customers] from Fiscal budget 2014.

Government has reduced the
  • Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014.
  • Excise duty on consumer durables cut from 12 to 10 per cent till 30.6.2014.
  • Cut excise duty on mid segment cars to 20% from 24%
  • Duty cut on SUV cars from 30% to 24%
Very welcome move in the current stagnant auto industry. But we should see if the manufacturer pass on these benefits to the end customers.


Thanks,

Prakash.
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Old 17th February 2014, 12:28   #2
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Default Re: Budget 2014 --- Cars price will be reduced

Good move indeed.

However, being a Vote On Account Budget, this reduction may not be long term. Next Govt will have to submit a new budget and since its post elections, the new Govt is likely to target incremental revenues from sectors like auto. So in short, this may be a small window and my guess is 2 months at the max.
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Old 17th February 2014, 12:30   #3
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Default Re: Budget 2014 --- Cars price will be reduced

As i understand duty cut on all the 3 categories of passenger vehicles is only till 30/6/2014.

Last edited by Mohan Mathew A : 17th February 2014 at 12:31.
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Old 17th February 2014, 12:31   #4
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Default Re: Budget 2014 --- Cars price will be reduced

How much would this translate to?

Any gurus who could translate them into some brackets based on Ex-showroom Price ( Rough Estimates)

3-5 lakh
5-8 lakh
8-11 lakh
11-15 lakh
15-20 lakh
20 lakh onwards

This would help some of us plan our purchases accordingly.
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Old 17th February 2014, 12:35   #5
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Default Re: Budget 2014 --- Cars price will be reduced

This is for manufacturers since it's a grim scene in the auto industry. Most probably this may not translate to any reduction in prices. Prices may remain same but the margins of manufacturers will help them.
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Old 17th February 2014, 12:54   #6
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Default Budget 2014 - Duty on small cars, 2 wheelers reduced!

Some good news to people planning for a new car!

http://profit.ndtv.com/news/budget/a...-lateststories

Not sure if this is purely a election stunt or will this be revised after a new Govt is formed!
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Old 17th February 2014, 13:09   #7
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

The Government of India has proposed a cut in the Excise Duty of cars and two-wheelers, which could result in vehicles getting cheaper.

Link to Team-BHP News Article

Last edited by Aditya : 17th February 2014 at 13:43.
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Old 17th February 2014, 13:15   #8
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Default Budget 2014 - Duty on small cars, 2 wheelers reduced!

Post deleted by the Team-BHP Support : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum.

Please read our rules before proceeding any further. We request you to post ONLY when you have something substantial to add to a discussion.

Last edited by GTO : 18th February 2014 at 13:14.
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Old 17th February 2014, 13:16   #9
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Reduction in excise duty on:

- small cars, motorcycles and scooters from 12% to 8%
- mid and large segment cars from 24% to 20%,
- Sports Utility Vehicles (SUVs) from 30% to 24%

The cut in duty will be applicable around June 20, 2014, when the new government is likely to present the full year budget.

Last edited by jessie007 : 17th February 2014 at 13:28.
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Old 17th February 2014, 13:27   #10
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How soon can we see a price reduction then?
In market for a hatchback and this news sure brightened my day
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Old 17th February 2014, 13:33   #11
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I called up Ring Road Honda, who have allotted me delivery of the new City sometime next week. These guys are saying they have no clue.
4% of a 10lac car is a lot of money.
Do people on the forum know what is the usual recourse for such savings to be passed on.
When a price rise is in effect the action is immediate, just hoping the same swiftness is employed the other way as well.
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Old 17th February 2014, 13:33   #12
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I think the reduction would be applicable from immediate effect.

This will last for around 4 months till a new government is elected & presents a new budget
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Old 17th February 2014, 13:34   #13
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

It all depends on the manufacturers. Whether they pass on the benefit to the consumer. And if they do, how much of it will they pass on.
Keeping in mind that the industry has been a slump, it presents an opportunity to the manufacturers as well to cut their losses a bit.

But all said and done, this is real good news. Obviously its an election move, but nevertheless the cut in excise duty on a range of products is a welcome move.

A lot of the SUVs will make sense again. Finally!
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Old 17th February 2014, 13:35   #14
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

This brings an interesting question to my mind. Say you book a polo gt tsi and get delivery of the car post July, would you get benefits of the price reduction or would sales personnel ask you to cough up the original amount? This is with respect to all automotive companies and not only vw. As it goes generally if there is a price increase, customers have to pay the extra amount and have no price protection. It will be interesting to see if the dealers have some sort of price protection?

What kind of back alley tactics would they resort to if they still want the original amount?

Last edited by D'Artagnan : 17th February 2014 at 13:37.
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Old 17th February 2014, 13:37   #15
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Default Re: Budget 2014 - Duty on small cars, 2 wheelers reduced!

Welcome boost for the automobile industry, looks like Auto Expo 2014 had sensed it too.. given the amazing enthusiasm & buzz there.
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