[kaviprem]

^^ No buddy, as far as I know, the CBU's are @ 100+% of import duty and CKD's attract around 30% duty. So, definitely, the end cost of the product should be far less than the imported CBU's, but wonder why not !

[Ragul]

To quote an article

The deal would eliminate tariffs on 90 percent of Japanese exports to India, such as auto parts and electric appliances, and 97% of imports from India, including agricultural and fisheries products, until 2021, the Japanese government said.

I hope consumer electronics and home appliances and included in the list along with Auto spares.

HTH

[n_aditya]

Good news. My 600 is not so far away. But something tells me its a good 2-3 years away, at least.

[cruiser@0523]

Originally Posted by Ragul

To quote an article

I hope consumer electronics and home appliances and included in the list along with Auto spares.

HTH

I dont think consumer electronics etc are made in Japan, 90% of them are made in China.

[DMehta]

This is great news. If Japanese automobiles become cheaper for indians, it will boost the car sales up to a great extent. So does this mean that the kizashi and the prius will become cheaper? what about the evo?

[nickatnite]

This FTA covers reduction over a period of ten years!. Keep dreaming.

[mayankjha1806]

Here it says

India Japan Sign Free Trade Pact

Although terms are not clear yet, the abolishment of tariffs would lead to huge drop in prices of Japanese cars and bikes. The Toyota Prius would get a Rs. 10 lakh price drop, whereas the Yamaha R1 would be available for Rs. 6 lakhs if excise duty on automobiles would be abolished

[Torquedo]

*** Mods, request you to merge this thread with any of the following threads, as it seems to me that this one is a subset of the following ***

Prices of Imports set to come down drastically !!
Import Tariff on CBU/CKDs to be reduced??

Thanks & Regards.

[Speeding@160mph]

Originally Posted by kaviprem

^^ No buddy, as far as I know, the CBU's are @ 100+% of import duty and CKD's attract around 30% duty. So, definitely, the end cost of the product should be far less than the imported CBU's, but wonder why not !

I wasn't clear with my statement - CBU's are hit with approx 110%. CKD's around 40% But CKD's need to be assembled in India. There is significant expenditure for that process, setting up a plant, investing in machinery, training the labor etc etc.

Which is why if you compare a CBU & CKD version of the SAME car, the resulting difference will be primarily labor costs. Secondary factors such as overheads, profit etc will be higher in India initially but once economies of scale set in (10+ years), we should see it coming at par with global car manufacturing hubs. That's why you won't see a drastic drop in prices of the cars already being assembled here (3, C A4, X1, 5, E etc).