What will be the impact of Budget on Indian Car Scene

[shatrughna]

there is excise reduction on hybrid cars also - 24% to 14%. will it impact prices of Honda hybrid yet to be launched and then i10 and nano too!

[cartech]

Now FIAT can declare price of 1.3 MJD!! Swift-D, GETZ-D, FUSION-D will also be cheaper

[snaronikar]

Hi,

The below are the highlights of the budget 2008 which was presented by FM today.

1) ED on small cars cut from 16% to 14% which will mean cheaper small cars.
2) Crude customs duty cut from 5% to 3%.
3) Personal Income tax exemption limit has been raised from 1.1L to 1.5L.
4) IT slab. People earning from 1.5~3L - Tax 10% & >5L 30%.THough I do not know whether this will be a flat percentage or it will be like existing...

C'mon guys keep adding to this....

[sameer551]

So now how much can the prices reduce for small cars like swift and palio?

[srh]

Originally Posted by sameer551

So now how much can the prices reduce for small cars like swift and palio?

In the short term it might be around 12000-14000 on a 5 lakh car. Expect the manufacturers to pocket the cut in excise duty in the medium term.

[LLL]

60k crores farmers loan waived off...banks are gonna take the hit.

i wonder how banks will recover this amount..maybe by raising fees for transactions and increasing rates on loans....

[jkdas]

Originally Posted by LLL

60k crores farmers loan waived off...banks are gonna take the hit.

i wonder how banks will recover this amount..maybe by raising fees for transactions and increasing rates on loans....

60K would be 60,000 crore?

Thats a nice amount

[LLL]

Originally Posted by srh

In the short term it might be around 12000-14000 on a 5 lakh car. Expect the manufacturers to pocket the cut in excise duty in the medium term.

what would have helped is customs duty cut on all items and specifically safety equipment like airbags/ABS & hybrid cars.

And higher excise duty cuts for manufacturers providing Airbags/ABS in their cars.

[suman]

Originally Posted by snaronikar

4) IT slab. People earning from 1.5~3L - Tax 10% & >5L 30%.THough I do not know whether this will be a flat percentage or it will be like existing...

Didn't get what you meant by that. Anyway, for someone in the 30% bracket, the change in slab plus the hike in the exemption limit translates to a saving of around Rs 39,000 a year in income tax alone (plus savings in surcharge & cess where applicable)

I, for one, am hitting the nearest Pub this evening

[binoyb22]

The Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent.

[LLL]

Originally Posted by jkdas

60K would be 60,000 crore?

Thats a nice amount

yep its a nice amount, but now which bank will lend to farmers?

And why not write off all small housing loans - like for all houses with 3bhk or less?

[Joz]

Good budget for the automotive industry. Although the reduction in crude import duties will not impact the retail prices.

The budget should see more manufacturers making India a small car hub and ofcourse more manufacturers developing hybrid vehicles in the sedan and UV segment. With more disposable income with everybody, it sure will be exciting times ahead.

[LLL]

Originally Posted by suman

Didn't get what you meant by that. Anyway, for someone in the 30% bracket, the change in slab plus the hike in the exemption limit translates to a saving of around Rs 39,000 a year in income tax alone (plus savings in surcharge & cess where applicable)

I, for one, am hitting the nearest Pub this evening

Yep, thats a good thing from this budget. Could have been sweeter had 10% cess been reduced to 5% as industry had demanded...

[undead]

HYUNDAI says will cut prices of its small cars by Rs.10000 to 15000

[vasudeva]

Originally Posted by shatrughna

there is excise reduction on hybrid cars also - 24% to 14%. will it impact prices of Honda hybrid yet to be launched and then i10 and nano too!

Provided they make it here. AFAIK, no one is making any hybrids here either now or expected to do in the short term.