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Old 31st December 2014, 10:32   #16
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Price of a car will depend on the date of invoicing. So if it is before 31st Dec midnight, the customer will get price protection else the price applicable at the time of invoicing will be considered.

And rising input costs is not an "excuse" in my opinion. We can't always blame the manufacturers. The 4m rule too was never made with the aesthetic appeal of a car in mind. End of the day the customer did benefit from this and we can see the number of cars on the road as a result.

I too had personally deferred my car purchase to January, 2015 just to get a fresh 2015 production car. I cant really complain about the price rise, as much as it pinches my wallet.
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Old 31st December 2014, 19:22   #17
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

The Government has stopped the manufacturers to Invoice on 31st December, 2014. That means, all Vehicles invoiced up to 30th December, 2014 will enjoy the lower rate of Excise duty. As far as the Customer is concerned, Whether he purchases in January 2015 or even later, will enjoy lower rates for Vehicles manufactured and Invoiced in 2014.

There was one more increase in the excise Duty of Petroleum Products. And with the increased revenue from upward revision of Excise duty on Vehicles, the Govt. is now slush with more Funds (Revenue). I hope this increased inflow of Revenue is utilized properly.
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Old 31st December 2014, 19:48   #18
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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Originally Posted by KRN View Post
There goes my "brilliant plan" of waiting till Jan 2015 to get a 2015 manufactured car on the hope of eeking out a few thousands in resale value! Looks like I have to shell out 30k more now and don't think will make up such a big amount in resale value either!
Same here. Booked a Honda City and Innova in Nov'14 and was waiting for 2015 model. Now it looks like I'll have to fetch somewhere around 50k for both the cars combined. That's going to be an expensive ditch in pocket.
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Old 1st January 2015, 15:46   #19
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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Originally Posted by Carpainter View Post
Same here. Booked a Honda City and Innova in Nov'14 and was waiting for 2015 model. Now it looks like I'll have to fetch somewhere around 50k for both the cars combined. That's going to be an expensive ditch in pocket.
If you are not hellbent on the 2015 manufactured tag, you could ask your salesman to sell the stock cars of 2014. The November/December manufactured ones will have lower prices as excise is paid once it leaves the factory gates.

I too was waiting for the 2015 Brio but as i was informed about the excise rate cut roll back i booked the 2014 stock car. Thanks to the PDI saw manufacturing date as November and just booked it and paid. Doing the registration now in Jan, 2015.

For small cars the difference is 4% but for SUV's its 6%

http://economictimes.indiatimes.com/...w/45706185.cms
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Old 2nd January 2015, 07:32   #20
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Man! That will be a sad development. The excise duty reduction is just one of the factors for improvement of sales in auto industry. I feel the greatest contributor for that was the fall in crude oil prices.

Even, that benefit is not being passed onto the customers now. The govt. is simply increasing the excise duty from petrol and diesel to match the fall in international crude oil prices. They further increased it by 2 bucks per liter from today again.

Increasing the duty on cars now will push the prices across segments and will put a leash on the sector though. Hope these reduced rates will continue on. And I really wonder where the money from these hikes going?
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Old 2nd January 2015, 08:10   #21
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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Originally Posted by damager21 View Post
I don't see this happening. We already have four excise duty slabs, the last thing we want Government to do is further bifurcate these slabs and complicate it.

Also, this will give unfair advantage to only two manufacturers viz. Maruti and Hyundai as some of their high volume models fall in the 3600m range. 40% of Maruti's monthly sales comes from Wagon R, Celerio and Alto, all of which are less than 3600mm.
I was not suggesting a fifth slab - just to merge the bigger small cars (B2/C1) to the smaller big cars (C2) since in most cases, they share the same engine (for diesel) already. In a country with narrow roads and scarcity for parking, the width of a car is an equally big factor for the road presence. Ecosport at 1765mm is wider than several C2 offerings and actually take up more space in practical sense in our narrow roads but gets a small car duty benefit that a City or Verna doesn't get.

BTW, you missed Tata Nano - that would be another beneficiary and a 3rd manufacturer. Also, currently, Maruti is enjoying this benefit for 90% of its offerings. How is it an advantage for them if that benefit comes down to 40% of the cars? IMO, this would be a disadvantage to Maruti since the lack of duties would increase the prices - we know how people are reluctant to buy a costly Maruti. Higher price would work against Maruti in the premium hatch segment if we go by the mindset of the aam aadmi.

Last edited by zenren : 2nd January 2015 at 08:17.
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Old 2nd January 2015, 09:02   #22
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

I guess the consumer has to be taxed from birth to death of the product / service they buy. If only we can see how efficiently this tax money is spent, it would be much better. What I see is that the tax system can be easily manipulated by someone who has half a brain in corporate finance structuring. And there is no consumer protection in terms of pass-through pricing / payments.
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Old 2nd January 2015, 11:43   #23
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Default re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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Originally Posted by arakhanna View Post
If you are not hellbent on the 2015 manufactured tag, you could ask your salesman to sell the stock cars of 2014. The November/December manufactured ones will have lower prices as excise is paid once it leaves the factory gates.

I too was waiting for the 2015 Brio but as i was informed about the excise rate cut roll back i booked the 2014 stock car. Thanks to the PDI saw manufacturing date as November and just booked it and paid. Doing the registration now in Jan, 2015.

For small cars the difference is 4% but for SUV's its 6%

http://economictimes.indiatimes.com/...w/45706185.cms
No I think I'll have to go for 2015 model only. Honda dealer said they don't have any old stock of City.

Anyway let's not hijack the thread and to discuss the point the government is not doing any justice to the auto industry at the moment. At one side they are increasing the excise duty and on the other side they are depriving the common people of low crude oil price benefit in the international market. All this could act as another dampener and hold the market growth back even further.
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Old 5th January 2015, 17:57   #24
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Honda has taken the lead in announcing hike in its car prices.

The company has raised the prices of its entry level car Brio in the range of Rs 15,000 to Rs 18,000 and it will now cost between Rs 4.21 lakh and Rs 6.30 lakh (all prices ex- showroom Delhi).

Prices of compact sedan Amaze have been hiked in the range of 19,000 to Rs 26,000 and it will now be available for Rs 5.18 lakh to Rs 7.78 lakh.

The prices of petrol version of the compact sedan have been increased in the range of Rs 19,000-Rs 23,000 while diesel powered models would get expensive by Rs 23,000- Rs 26,000, the company said.

Honda's flagship mid-sized sedan City will be dearer by up to Rs 48,000. The prices of petrol variants of the car have gone up by Rs 33,000 to Rs 46,000, while the diesel variants have become expensive in the range of Rs 37,000 to Rs 48,000.

The model is now priced between Rs 7.53 lakh and Rs 11.53 lakh.

The company has also hiked the price of its premium sports utility vehicle CR-V by 60,000 and will now be available between Rs 20.85 lakh and Rs 24.96 lakh.

An official of Honda Cars India said the company is still working on the quantum of price hike for its multi purpose vehicle Mobilio.

http://www.business-standard.com/art...0500443_1.html

Last edited by damager21 : 5th January 2015 at 17:59.
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Old 5th January 2015, 18:51   #25
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Thumbs down Honda hikes prices by up to Rs. 60,000

Well - this was in the wings after the Govt. announced that the excise break was not being extended into 2015!

http://timesofindia.indiatimes.com/b...w/45760964.cms
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Old 6th January 2015, 08:55   #26
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

This was very much on the cards. It was supposed to have been a 'temporary' cut, and with the auto industry having a boom year, this step was totally on the cards. With the shenanigans of ministers slowing down road projects during the past dispensation, money is required.
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Old 6th January 2015, 09:36   #27
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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money is required.
Yeh, but I thought a right wing govt meant lesser taxes. This one seems to be taxing us to hell - first the tax hike on petrol/diesel and now the excise duty on cars. These guys, during the run up, talked about abolishing income tax. But yes, that time they were recruiting.
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Old 6th January 2015, 09:36   #28
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Just seen on toyota dealer website the new prices Liva G is increased by 24000 ex showroom now it is 5,28,181/- radhakrishna toyota in Hyderabad

Last edited by rakeshkalli : 6th January 2015 at 09:39.
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Old 6th January 2015, 10:51   #29
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

Hyundai announces increase in price in the range of Rs 15,000-1,27,000.

"We have increased prices in the range of Rs 15,000-1,27,000 and this has been done on account of the higher excise duty, increased cost of inputs and the currency fluctuations," Hyundai India senior VP Rakesh Srivastava told TOI. The retail price for the entry-level Eon has gone up by Rs 15,400, for the i10 by Rs 21,500, for the Elite i20 by Rs 27,000 and for the Santa Fe SUV by 1.27 lakh, Srivastava said.


Sources in Maruti said that the Alto will be dearer by at least Rs 10,000 while other models like the Swift will get expensive by over Rs 20,000 and the Dzire by more than Rs 25,000. "The final hikes are still being worked out and will be announced soon," the sources said.

http://timesofindia.indiatimes.com/b...w/45770864.cms
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Old 6th January 2015, 10:52   #30
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Default Re: Jan 2015: Reduced excise duty comes to an end. Car prices to climb

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Originally Posted by civic-sense View Post
Yeh, but I thought a right wing govt meant lesser taxes. This one seems to be taxing us to hell - first the tax hike on petrol/diesel and now the excise duty on cars. These guys, during the run up, talked about abolishing income tax. But yes, that time they were recruiting.
Neither the petrol/diesel nor the excise duty comes under the income tax. Given how evasive most of the population is when it comes to paying the taxes, this would ensure a much more equal footing for tax collected from the people when compared to the conventional way of heavy income tax and minimal taxes elsewhere.

We are seeing the income tax slabs consistently being increased, with 30% slab currently applicable only to those earning over 10 lakhs per annum. When these essential commodities are taxed, the cost would have to be borne by everyone who is dependent on the same. So the per-head tax would come down, since the denominator increases from just the salaried class to the entire population.

Though this makes it impossible to evade tax if you are using these resources, the biggest impact would be felt at the lowest level of the society. This segment never had to pay any income taxes earlier but this additional burden is going to get passed on to them as well. This is precisely how a right-wing ideology works - middle class and upper class would benefit since their tax burden is now shared with the lower class of the society and hence individuals in those segments pay lesser than before.
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