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Old 28th May 2014, 14:26   #16
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Default re: Auto Sector wants NaMo Govt to boost market conditions

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Originally Posted by rahulsharma2008 View Post
Indian auto companies have surely transferred huge royalty amounts to foreign holding companies but at the same time made sure that India becomes a small car export hub of Asia. That has brought in a lot of foreign currency back into India and also generated employment in tough times. Obviously it has made a positive impact on our CAD.
Sure agree about the CAD but they're not doing a favour to the country. You know very well that companies have come to this country only because of the huge growth potential that this country provided whereas in other major markets the growth has stagnated. The auto companies are doing business and everything in business is driven by profit motive. They made this country an export hub only because of the very cheap labour cost in this country and the favourable investment climate that this country provided. All this eventually leads to a cheap cost of production for their cars and finally results in more profit.
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Old 28th May 2014, 14:31   #17
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Default re: Auto Sector wants NaMo Govt to boost market conditions

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No I was correcting what swiftnfurious said. He said that Auto companies are on a profit wave by hiking prices at the slightest opportunity which is wrong because numbers suggest otherwise.
And I wasn't rebutting you. Just quoted you.
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Originally Posted by gsurya View Post
Despite giving land very cheap to Tata & giving huge subsidies on taxes, Nano from Gujarat flopped - as per Gujarat CAG subsidy to Tatas for Nano project totalled Rs 33000 cr. So how much more does Modi need to do give away as PM?

Ultimately if we are get back to growing at 7.6% average as we were during the UPA decade, then cars will sell as fast as they were in 2009 when we surpassed 9% growth. Thats the main factor.
Right. On one hand we criticize freebies to the poor, but remain silent to sops given to such large corporations. It is not that Tata does not have money to invest, and govt does not get a stake in Tata either. Gujarat govt has already lost crores giving 10,000 crore soft loan (273 disbursed) to Tata at 0.1% annual interest.

Governments should stop all sops and let market forces determine demand and supply. The sector is mature enough to sustain on its own.
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Old 28th May 2014, 14:54   #18
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Default re: Auto Sector wants NaMo Govt to boost market conditions

My opinion:

1) Abolish/reduce to a bare minimum all taxes on fuel - State and central level (yes, at 1st looks like a revenue loss)

2) Give Petroleum companies a free reign like Reliance or Essar Petrol bunks

3) Automatically the burden on Govt for subsidies reduces and oil companies are responsible for their own backs

4) Common man will directly feel the impact of cheaper fuels (say 10-20Rs cheaper)

5) Everyone buys a new cars since fuel is more affordable now

6) Car companies feel the demand rise

7) Please ABOLISH the stupid excise duty on cars made in India and sold anywhere in the world!

8) That way car is cheaper for Indian buyer like you and me, Cheaper Export value means cheaper Indian cars for the western buyer, so more exports, more business

9) Burn corrupt people in RTOs - hang truckers (READ owners, not drivers) who overload their tonnage and DAMAGE the Roads - they would get more fuel efficiency as well as longer life out of their trucks

10) Connect/widen/fasten/hasten connectivity, newer roads, By-passes, Flyovers, Bridges, double the toll booths

11) ^ See the fuel import bills reduce due to wastage/pilferage/wastage on uncessary places

12) Regularize the God knows $1 Billion Auto-ancillary industry/backbone in India. There are zillion factories/sweatshops supplying OE parts to car makers - Ga-Zi-llion more sending substandard spares to all local spare part shops

13) Buy and provide a ambulance for every 25-50Kms of Indian roads. That way Ambulance sales also grows, more so deaths/casualities and stress on Insurance companies reduce

14) STOP STOP STOP giving 15 years FITNESS CERTIFICATE for new automobiles, Does anyone in the Govt know the condition of a car after 3-4 years of abuse!!

15) Have a UK type MOT (whats it called in USA?) - Renew FC every 2-3 years, that way car stays fit, owners spends on spares/service, 1st time Sale Road tax can be nearly abolished or say made 1% of sale value instead of current 12-16% across India.

16) ^ stays good only if Cess Pool in RTO is abolished

17) Punish corrupt people in the entire Gamut of Surface transport (water/air not discounted) so bad that they dont know what hit them, black cost of operating a automobile may be nearly 50% of white

18) If Govt concentrates on CLEANING up the ROAD TRANSPORT - INFLATION is AUTOMATIALLY controlled, see how below

19) Truck owners give 1-bundle of Cash to driver for fuel, 2nd bundle for Salary, 3rd for Tolls, 4th - FOR BRIBE. Its upto the DRIVER to avoid spending on bribe and make the extra take home salary

20) Because of this 'extra' bundle of cash to driver, every thing from tooth paste to Curved LED TV that ends up in your home is expensive!!

Last edited by svsantosh : 28th May 2014 at 14:56.
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Old 28th May 2014, 15:00   #19
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Default re: Auto Sector wants NaMo Govt to boost market conditions

@svsantosh:

I had to transfer my wife's car from Assam to Mumbai. Has taken me six visits so far as I refused to use an agent & taken more than 6 months already.

RTO tries to create hell for you if you dont use an agent, imagine how corruption is institutionalized.

At every stage I was looked at with surprise that I was doing it by myself instead of using an agent, usually I was the only one in a long queue who was an individual, rest were agents.

Had to pay a 500 Rs bribe to Octroi agent to allow me to pay the Rs 900 Octroi fee. I try not to pay a bribe to this mafia unless absolutely cornered.
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Old 28th May 2014, 15:27   #20
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Default Re: Auto Sector wants NaMo Govt to boost market conditions

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Originally Posted by gsurya View Post
I had to transfer my wife's car from Assam to Mumbai. Has taken me six visits so far as I refused to use an agent & taken more than 6 months already..
I totally understand the frustration gsurya.

A friend of mine and a MM Jeep Classic owner (Tbhpian) in my little town of Hosur spent all of 13 months in getting his KL regn # changed to TN. He choose not to pay a single penny extra and actually in that process grew familiar and friendlier with RTO people in Hosur RTO. And this 13 months was because he had a valid NOC from the seller, else would have taken a few years more I guess!!
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Old 8th June 2014, 19:16   #21
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Default Re: Auto Sector wants NaMo Govt to boost market conditions

Automobile dealers demand tax sops in Union Budget

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The stimulus by way of cut in excise duty on passenger vehicles announced in the Interim Budget should be retained in the regular Union Budget, the Federation of Automobile Dealers Association has said.

Besides, all passenger cars irrespective of fuel, engine capacity and size should attract the same rate, 12 per cent, of excise duty, FADA said its pre-budget expectations, submitted to Union Finance Minister Arun Jaitley last week.

SOURCE: http://economictimes.indiatimes.com/...w/36254971.cms
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Old 9th June 2014, 14:24   #22
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Default Re: Auto Sector wants NaMo Govt to boost market conditions

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Originally Posted by a4anurag View Post
Automobile dealers demand tax sops in Union Budget
They are being greedy now IMO. Unless they invest back in R & D to develop cars here for indian market, i see no reason to provide them tax sops. Already they are raking in huge profit by exporting from India & giving least priority to domestic market.

Additionally Lack of legal framework like Europe means they are getting away from law by dishing out half baked products.
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Old 9th June 2014, 17:24   #23
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Default Re: Auto Sector wants NaMo Govt to boost market conditions

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Originally Posted by rahulsharma2008 View Post

Lets not argue endlessly. Bottomline is if Cars become cheap, I am sure our community will love it. Its a win win situation for all !

Simplify Taxes ! They are too complicated at current

Excise Duty
Import Duty
Sales Tax
Registration tax
Road Tax
Octroi
etc.
Why do you, and all corporates esp car manufacturers, say 'simplify taxes' when you mean 'cut taxes'. The vast majority of prosperous Indians (not excluding the corporates themselves) evade and/or avoid taxes.

Taxation of cars is not just about a win-win for the buyer and the company: it also involves the public interest in securing adequate tax revenues in a country where almost everyone is a (potential) tax-chor/evader/avoider.

Also, you must realize that cars cause 'externalities': every thing from pollution and congestion, to policing costs, to urban sprawl and parking woes, to energy security issues. They must, accordingly, be taxed at rates higher than say a smartphone or steel or cement.

Last edited by desdemona : 9th June 2014 at 17:30. Reason: delete quote
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Old 10th June 2014, 12:34   #24
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Default Re: Auto Sector wants NaMo Govt to boost market conditions

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Originally Posted by desdemona View Post
Also, you must realize that cars cause 'externalities': every thing from pollution and congestion, to policing costs, to urban sprawl and parking woes, to energy security issues. They must, accordingly, be taxed at rates higher than say a smartphone or steel or cement.
Yes, cars should be taxed very high like SG, EU. However, SG and EU slowly increased taxes on automobiles after making a nationwide infrastucture of public transport.

When you do not have this infrastructure, car becomes a necessity.
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