Cars to cost more ...

[esteem_lover]

Originally Posted by amu1983

>> What are all the taxes on cars that are made in india?
The sales tax. Excise duty is another. And, of course, there's registration over and above the ex-showroom price. Am not sure of the exact numbers, but it's said that when you buy a brand new car, over 30% of what you pay, goes to the government.

Now, coming to budget 2007, car makers should have announced price cuts today. Mainly because of duty cut on crude oil, which means lower petrol/diesel costs, which means lower transport (freight) cost for the car makers. Also... tax breaks on R&D will mean that we should see more and more new/better models by the car makers. And... higher farm credit outlay means more demand for tractors and two wheelers, which should cheer the auto companies like M&M, Bajaj and Hero.

The reaction on stock market can be party due to global factors. Almost all world markets have fallen considerably over past 3-4 days.

amu1983, i see that you are missing the bigger picture. the duty cut in crude oil & petrol is only meant for the oil companies & not to be passed on to the consumer.
cheers

[jango]

I heard that Maruthi is going to give all potential customers another 15 days period to buy any car from therm at the pre-budget price ....Hyundai is yet to decide....anyways its sad that the prices have gone up !!

[tsk1979]

With Honda increasing the prices, its only a matter of time before all others do the same. Its just a question of when and not will they.
A very disappointing budget, and not just for the auto industry.

[rajshenoy]

No one is happy except cats and dogs...

Well...i was waiting for the budget to be announced to buy a swift...
Looks like i have to rush now..(problem is that i am out of station and wont be back by next weekend)

Guys, any idea how much the hike will be..for say Swift VXI ?

[msdivy]

tsk1979, your Safari/Verna/Baleno plans just got expensive !!

[sam_78]

Finally some good news for the luxury car buyers , after the cut in custom duties on imported car parts in the union budget 2007-08 Skoda auto slashed car prices up to Rs. 24000 .

BS Online News

[navdeep]

Hyundai Motors India (HMI), the country's second largest carmaker, today said it will increase prices of all its models on account of the rise in education cess.

Though HMI did not give an indication on the exact quantum of increase, but said it was working on it and a hike could be expected by the middle of this March.

"Due to the one per cent increase in education cess in the Union Budget, Hyundai cars would cost more to the end consumer," H S Lheem, managing director, HMI, said in a statement.

The company would increase the prices after it clears all existing bookings, he said. The company will absorb the additional costs till then.

Market leader Maruti Udyog (MUL) yesterday had announced its decision to hike prices from March 15, while other companies such as Ford were taking stock of the situation to review prices.

MUL had said it would hike prices of its cars on account of additional one per cent education cess.

The company, however, added that as a gesture to its customers, who might have deferred purchases owing to the budget, it had not immediately hiked the price.

Ford India also said it is reviewing the impact of budget on the prices of its products.

"We will be considering an increase in the price of the Fiesta and Ikon that have high local content. We would need to study the impact of customs duty reduction on the price of Endeavour," a Ford India official said.

http://business-standard.com/common/...N&autono=21013

[tsk1979]

Prices of Tata Maruti etc., have been increased by 400-2000rs approx.

[navdeep]

I think the companies will not increases the prices of all thier models .. a few might be spared or atleast lowest increase.

[CaliAtenza]

Saw in the paper that honda is only increasing prices on the crv. Also bmw will be dropping prices on the ckd models..i wonder how much the made in india 325i will be now

[theMAG]

Originally Posted by extreme_torque

@ALL... Why do cars that are made almost completely in india with localization levels close to 80-90% cost comparatively more? What are all the taxes on cars that are made in india?

Costing is primarily due to the INR not being commoditized and that its a fairly weak currency.

LTT is the tax applicable to autos. The current price increase is not directly to increase in LTT and duty but an across-the-board distribution of a higher educational cess to fund the education sector.

[rahul_intlad]

Things just keep getting worse,price rise by honda

Honda Siel Cars India Ltd is set to start charging central sales tax on its models since the tax holiday it enjoys in Uttar Pradesh is ending this month.

"With the announcement in the Budget that CST will be reduced to 3 per cent effective from April 1, we will be charging that amount to the customers," he said.
This will mean that the 'City', which is priced at Rs 6.75 lakh, can be costlier by Rs 20,250. 'Civic', priced at Rs 10.88 lakh, would be dearer by about Rs 32,644 and 'Accord', which is tagged at Rs 14.92 lakh, may cost Rs 44,760 more.

Source:
The Hindu News Update Service

[mithun]

Originally Posted by tsk1979

With Honda increasing the prices, its only a matter of time before all others do the same. Its just a question of when and not will they.
A very disappointing budget, and not just for the auto industry.

Why it's very disappointing ???

Don't you want our rural areas to progress ?

OR

Do you want all the developments should be concentrated only on the urban areas so that it will benefit only the upper middle class/dirty rich ?

[BUSA]

About Maruti hiking prices i was told by my dealer its just a stunt by MUL as their cars are not selling. Only car which is in hot demand is the Swift. By showing people they are increasing prices they will rush and buy the cars.

[Godfather]

Originally Posted by BUSA

its just a stunt by MUL as their cars are not selling. Only car which is in hot demand is the Swift. By showing people they are increasing prices they will rush and buy the cars.

No Offence BUSA but... I dont believe this..
Which other car company competes with maruti models in pricing range and ***???


Godfather