Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 27th February 2008, 12:12   #1
BHPian
 
Join Date: Jan 2008
Location: Mumbai
Posts: 32
Thanked: Once
Default Excise duty reduction in budget?

Any possibility of excise duty reduction on small cars in the budget on friday? Also - would companies likely reduce current discounts, if there is indeed a cut, so that the final price remains more or less same ?
Neeraj Dabake is offline   Reply With Quote
Old 27th February 2008, 12:22   #2
Senior - BHPian
 
Join Date: Mar 2007
Location: Delhi
Posts: 2,175
Thanked: 128 Times
Default

As to reduction, no one can predict with accuracy. Anyway, there is a 50% probability of being right. There was a huge expectation last year, but nothing happened. My personal opinion on this is not relevant.

Second, if excise is cut, then you can bet on some reduction in discounts. If not, then discounts should increase in March, with perhaps a fire sale around the end of March. Both ways, prices should be lower at end-March than in early-March.
vasudeva is offline   Reply With Quote
Old 27th February 2008, 12:48   #3
Senior - BHPian
 
ram_hyundai's Avatar
 
Join Date: Jun 2006
Location: Calicut ,trisur
Posts: 2,019
Thanked: 48 Times
Default

My info is no excise duty exemption for small cars,rather some encouragement would be there for the sedan class of vehicles.My advice is wait and watch.
ram
ram_hyundai is offline   Reply With Quote
Old 27th February 2008, 16:53   #4
BHPian
 
Join Date: Jan 2008
Location: Mumbai
Posts: 32
Thanked: Once
Default

So, is it better to book now (in Feb before budget), or wait till March? Dealers have been scaring me saying that since march is peak season, whatever discounts are currently available will also be withdrawn, and so it will be expensive to buy in March, if there is no cut in budget. And any scope for better (lower) prices towards March-end compared to Feb-end : i can wait till march end for the purchase.

Neeraj
Neeraj Dabake is offline   Reply With Quote
Old 27th February 2008, 17:17   #5
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,646 Times
Default

According to the rumor mill, this is supposed to be a "Green budget', which means
1. Benefits for "green vehicles"
2. Lesser taxes on small cars
3. Increased taxes on MUV/SUV etc.,
4. Some sops for ethanol/biodiesel ready vehicles.
tsk1979 is offline   Reply With Quote
Old 27th February 2008, 17:42   #6
LLL
BHPian
 
Join Date: Mar 2005
Location: Delhi
Posts: 634
Thanked: 2 Times
Default

i do not have a high opinion and hence any high hopes of any benefits. They want to make india a hub for small cars ONLY...

i cannot understand why india cannot ALSO be a hub for big cars, SUVs, Buses, Trucks, Trains, Aeroplanes?? Basically anything that can move.

Regarding "green budget"..petrol is greener than diesel. but they raise price of diesel by rs 1 and raise price of petrol by rs 2...encouraging more diesel vehicles. Also no effort to encourage hybrid cars like prius etc.

Classic case of short sightedness...and hence my low opinion about people at helm.
LLL is offline   Reply With Quote
Old 27th February 2008, 17:56   #7
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,646 Times
Default

From a carbon credit point of view Diesel is greener.
Its possible to make diesel cars as clean as petrol cars with the right technology, and with higher FE you let out fewer greenhouse gases
tsk1979 is offline   Reply With Quote
Old 27th February 2008, 18:01   #8
Senior - BHPian
 
Join Date: Dec 2007
Location: Bangalore
Posts: 1,062
Thanked: 291 Times
Default

Quote:
Originally Posted by LLL View Post
but they raise price of diesel by rs 1 and raise price of petrol by rs 2...
No my friend, as far as I know, diesel has more subsidy than petrol. This is attributing to the fact that trucks need diesel for transportation of our day-to-day needs. If diesel would have been as costly as petrol, then inflation would have gone through the roof. Its only that diesel cars are taking advantage of this fact!
blue_pulsar is offline   Reply With Quote
Old 27th February 2008, 18:06   #9
LLL
BHPian
 
Join Date: Mar 2005
Location: Delhi
Posts: 634
Thanked: 2 Times
Default

Quote:
Originally Posted by tsk1979 View Post
From a carbon credit point of view Diesel is greener.
Its possible to make diesel cars as clean as petrol cars with the right technology, and with higher FE you let out fewer greenhouse gases
Possibly true...but cleaner diesel will get mixed with kerosene....
LLL is offline   Reply With Quote
Old 27th February 2008, 18:09   #10
LLL
BHPian
 
Join Date: Mar 2005
Location: Delhi
Posts: 634
Thanked: 2 Times
Default

Quote:
Originally Posted by blue_pulsar View Post
No my friend, as far as I know, diesel has more subsidy than petrol. This is attributing to the fact that trucks need diesel for transportation of our day-to-day needs. If diesel would have been as costly as petrol, then inflation would have gone through the roof. Its only that diesel cars are taking advantage of this fact!
Yes, you are correct that subsidy on diesel is more. Not only trucks, but lot of manufacturing & farm equipment also uses diesel as fuel.
LLL is offline   Reply With Quote
Old 27th February 2008, 19:51   #11
BHPian
 
SilentEngine's Avatar
 
Join Date: Jan 2008
Location: Mangalore-Bangalore
Posts: 917
Thanked: 119 Times
Default

Quote:
Originally Posted by LLL View Post
i do not have a high opinion and hence any high hopes of any benefits. They want to make india a hub for small cars ONLY...

i cannot understand why india cannot ALSO be a hub for big cars, SUVs, Buses, Trucks, Trains, Aeroplanes?? Basically anything that can move.

Regarding "green budget"..petrol is greener than diesel. but they raise price of diesel by rs 1 and raise price of petrol by rs 2...encouraging more diesel vehicles. Also no effort to encourage hybrid cars like prius etc.

Classic case of short sightedness...and hence my low opinion about people at helm.
If you see the trend in Europe Diesel cars are gaining popularity. 1.Diesel engines emit less green house gases than Petrol engines 2.Diesel is more efficient than Petrol 3.Only downside with current diesel engine is particulates. But it is possible to reduce it using better technology. Also it makes sense to provide incentives to small cars.
SilentEngine is online now   Reply With Quote
Old 27th February 2008, 19:56   #12
BHPian
 
SilentEngine's Avatar
 
Join Date: Jan 2008
Location: Mangalore-Bangalore
Posts: 917
Thanked: 119 Times
Default

Quote:
Originally Posted by LLL View Post
Possibly true...but cleaner diesel will get mixed with kerosene....
Thats a problem with regulation.
SilentEngine is online now   Reply With Quote
Old 27th February 2008, 20:09   #13
Senior - BHPian
 
undead's Avatar
 
Join Date: Jan 2008
Location: Bhavani - Komarapalayam
Posts: 1,187
Thanked: 165 Times
Default

IMO , there is not going to be much of a change ,as the elections are getting near . Mr.Chidambaram may slightly alter the IT Tax bracket or reduce the rates. Can expect changes in agricultural sectors . But who knows what he has in mind .. Wait for the judgement day.
undead is offline   Reply With Quote
Old 27th February 2008, 20:15   #14
BHPian
 
kkdelhi's Avatar
 
Join Date: May 2007
Location: Delhi
Posts: 230
Thanked: 15 Times
Default

Quote:
Originally Posted by Neeraj Dabake View Post
So, is it better to book now (in Feb before budget), or wait till March? Dealers have been scaring me saying that since march is peak season, whatever discounts are currently available will also be withdrawn,...
In my opinion, it is better to book now. If price cuts do happen, take the delivery in March, else you take the benefit of discounts currently being offered. Either way, the customer wins. Isn't that the way it works?
kkdelhi is online now   Reply With Quote
Old 27th February 2008, 20:55   #15
Senior - BHPian
 
Join Date: Mar 2007
Location: Delhi
Posts: 2,175
Thanked: 128 Times
Default

Do not worry, with or without excise cuts, cars will be cheaper in March. Do not go by what dealers say. They always have a lean February, and will tell you anything to close the deal now. They do not know if you will come back again.

March is peak season for sales, but the discounts are also high because of financial closing. Traditionally, the worst period for buyers (looking for big discounts) is around the festive season. March, April, Dec, Feb, Sep are usually considered good buyer months, unless a festival falls (eg. Navratra/Diwali in mid Oct).
vasudeva is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Budget 2014 - Car prices to come down due to reduction in Excise Duty! prakasse The Indian Car Scene 203 28th February 2015 19:21
Honda not to pass on Duty reduction. EDIT : Now they will akj53 The Indian Car Scene 65 9th July 2009 11:34
Excise duty cut ??? ironwalah The Indian Car Scene 23 20th March 2007 15:16
primary reduction and secondary reduction devsus Motorbikes 4 19th April 2006 17:35
Excise Duty- Airbags LLL The Indian Car Scene 6 3rd April 2006 21:07


All times are GMT +5.5. The time now is 23:03.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks