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


Closed Thread
 
Thread Tools Search this Thread
Old 3rd March 2011, 09:54   #136
BHPian
 
Join Date: Sep 2007
Location: Mysore
Posts: 27
Thanked: 3 Times
Default Re: Prices of Imports set to come down drastically !!

I'am confused a little. IF the Free Trade Agreement with EU & Japan are in process, then what is the point of changing norms for CKD in budget at this time? OR is it that the companies and our Govt. taking us on a grand ride to clear the stocks that have already been imported?
nayakrnr is offline  
Old 3rd March 2011, 14:06   #137
Senior - BHPian
 
Join Date: Aug 2010
Location: Delhi
Posts: 2,133
Thanked: 1,005 Times
Default Re: Prices of Imports set to come down drastically !!

Quote:
Originally Posted by nayakrnr View Post
I'am confused a little. IF the Free Trade Agreement with EU & Japan are in process, then what is the point of changing norms for CKD in budget at this time? OR is it that the companies and our Govt. taking us on a grand ride to clear the stocks that have already been imported?
So that when the FTA comes they can reduce the prices with no total effect. Reminds me of the SALES going on regularly, where they increase the prices just before the sale, and then announce fantastic discounts - 50%+, but in effect the prices are similar to the very old ones, only now you cannot return/exchange! So we the paying public almost always get the raw deal.
Aroy is offline  
Old 3rd March 2011, 19:38   #138
Senior - BHPian
 
Ricky_63's Avatar
 
Join Date: Dec 2006
Location: Gurgaon
Posts: 3,846
Thanked: 375 Times
Default Re: Prices of Imports set to come down drastically !!

This is a wolf in sheep's clothing !! By taxing the CKD's what is he trying to do ?? Mop more for the government to spend it on another scam like the CWG or such ??

This budget has done everything to make the common man on the street unhappy...now "I am really looking forward to the fuel price hike"

Yeh mera India !! Mera Bharat Mahaan. Cannot stop 2G, CWG scams & the like but always ready to roger the happiness of the commoner.
Ricky_63 is offline  
Old 3rd March 2011, 20:24   #139
Senior - BHPian
 
Join Date: Apr 2010
Location: EU - Nordic
Posts: 1,563
Thanked: 953 Times
Default Re: Prices of Imports set to come down drastically !!

So, if I understand correctly, these companies now need to "knock down" the engine and transmission components as well and assemble them here in India. Maybe that's not going to be too difficult for these companies to do - just that they haven't done so yet. So yes, maybe this move by the govt may result in a few more employment opportunities. But, is it going to encourage these companies to set up manufacturing units in India? I'm not too sure.
StarrySky is online now  
Old 4th March 2011, 10:04   #140
Senior - BHPian
 
Join Date: Aug 2010
Location: Delhi
Posts: 2,133
Thanked: 1,005 Times
Default Re: Prices of Imports set to come down drastically !!

Quote:
Originally Posted by StarrySky View Post
So, if I understand correctly, these companies now need to "knock down" the engine and transmission components as well and assemble them here in India. Maybe that's not going to be too difficult for these companies to do - just that they haven't done so yet. So yes, maybe this move by the govt may result in a few more employment opportunities. But, is it going to encourage these companies to set up manufacturing units in India? I'm not too sure.
Engine is relatively easy to assemble. It is the gear boxes which pose a problem. Even MUL took a long time to get their gear box assembly to India.

What I think they will do is to assemble the engines and gear boxes, test them, and then take them apart into a kit and ship to India.
Aroy is offline  
Old 5th March 2011, 21:06   #141
Senior - BHPian
 
DicKy's Avatar
 
Join Date: Jan 2010
Location: Thiruvanthapuram
Posts: 1,440
Thanked: 607 Times
Default Re: Prices of Imports set to come down drastically !!

How they going to abolish tariffs on high end cars and at the same time retain small and medium cars tariff?
Price revision on top end will also have a drip effect on lower segments.
DicKy is offline  
Old 10th March 2011, 19:03   #142
Senior - BHPian
 
Ricky_63's Avatar
 
Join Date: Dec 2006
Location: Gurgaon
Posts: 3,846
Thanked: 375 Times
Default Re: Prices of Imports set to come down drastically !!

Today's HT says that the consortium of Auto Manufacturers (SIAM) are to meet with the Finance Minister to PUSH HARD for a re-look on the CKD issue...Seems there is still hope at the end of the rainbow !!



Cheers

Last edited by Ricky_63 : 10th March 2011 at 19:14.
Ricky_63 is offline  
Old 15th March 2011, 19:07   #143
BHPian
 
Join Date: Oct 2007
Location: Sydney/Cochin
Posts: 289
Thanked: 154 Times
Default Re: Prices of Imports set to come down drastically !!

It's a pleasure to hear finally about the proposal to reduce import duties on cars. I've been dreaming of it for a few years now, especially on days I hear of car costs in other countries, like my sister buying a Camry for around 12Lacs etc.

My views on the proposal are:

1. The government should protect local manufactures, considering the job opportunities they create, and keeping the revenues within the country, promoting industrial growth etc. But it should not be childish like levying stratospherical taxes and duties on imports thus making Indian manufacturers 'lazy'. Govt can protect local manufacturers by keeping total taxes and duties levied on a locally manufactured car should always below the total taxes and duties levied on an imported car, by a small margin. So if the locally manufactured car has the quality matching that of the imported cars, they'll sell better.

2. Customers will be getting more features and better quality products for what they pay for, both from indian brands as well as from the European brands

3. When the overall price is reduced, there will be much more people migrating from two-wheelers to cars, and most of them will consider cars from local brands which will be cheap to own and maintain. The end result will be a rise in the total sales volume, not just a replacement of Indian branded cars by German ones.

4. Anyway, the cost of manufacturing is more in EU than in India. So definitely they can't beat Indian brands in pricing, if Indian cars are priced right. Besides, maintenance, service and spares will be easier and cheaper for Indian cars.

6. Currently the edge imports are having over Indian brands is in quality. If Tata, M&M or HM is providing a quality product at a cheaper rate, people will go for it. I will not buy an overpriced Honda if Tata has a product having similar quality at a lower price.
Joe M is offline  
Old 15th March 2011, 20:00   #144
Senior - BHPian
 
EssYouWe's Avatar
 
Join Date: May 2009
Location: Lucknow
Posts: 1,392
Thanked: 15 Times
Default Re: Prices of Imports set to come down drastically !!

Quote:
Originally Posted by Ricky_63 View Post
This is a wolf in sheep's clothing !! By taxing the CKD's what is he trying to do ?? Mop more for the government to spend it on another scam like the CWG or such ??
No, as much as scams are inexcusable, you must understand that taxation is indispensable for the government. There will be no development, no roads to drive your bimmers on. Let us not raise our voices against something that will always be there.
And especially people with the ability/purchasing power to buy imports, will have to bear the cost of nation building. You must remember these are reasonably rich people.

Quote:
This budget has done everything to make the common man on the street unhappy...now "I am really looking forward to the fuel price hike"
I completely disagree with you here. Which common man are you talking of? The one on his beat up scooter going to office everyday? He doesn't care about CKDs. Or do you talk of that naked beggar child at the traffic signal? He doesn't care if the rich sahib drives up in a bimmer or a Toyota. All he wants is food twice a day.

And you talk about fuel hikes? Why should the rich man's joyrides be subsidized by the government? Will you stop driving if petrol prices hit 70? No, because you can take that hit with no more than a grumble.

If this government can pass the food security bill and implement UID correctly, the face of this nation will change.

However, you are very correct in criticizing the scams and governance issues. I sincerely hope that these are sorted soon and the process of nation building starts.

@Mods: I understand that this post is off topic. Please feel free to delete it, if that is what is required.
EssYouWe is offline  
Old 15th March 2011, 20:31   #145
BHPian
 
Join Date: Feb 2010
Location: Bangalore
Posts: 165
Thanked: 11 Times
Default Re: Prices of Imports set to come down drastically !!

^^^ Agree with you on most of the points. But can you tell me why should subsidized Diesel be used for a 20-lakh rupee SUV? I think the direct reimbursement of subsidy (with help from UID) should extend to diesel as well. Don't know how they would implement though.

Mods, again this is OT - delete if required.
cuboid is offline  
Old 15th March 2011, 21:12   #146
Senior - BHPian
 
Ricky_63's Avatar
 
Join Date: Dec 2006
Location: Gurgaon
Posts: 3,846
Thanked: 375 Times
Default Re: Prices of Imports set to come down drastically !!

Quote:
Originally Posted by Joe M View Post
It's a pleasure to hear finally about the proposal to reduce import duties on cars. I've been dreaming of it for a few years now, especially on days I hear of car costs in other countries, like my sister buying a Camry for around 12Lacs etc.

My views on the proposal are:

1. The government should protect local manufactures, considering the job opportunities they create, and keeping the revenues within the country, promoting industrial growth etc. But it should not be childish like levying stratospherical taxes and duties on imports thus making Indian manufacturers 'lazy'. Govt can protect local manufacturers by keeping total taxes and duties levied on a locally manufactured car should always below the total taxes and duties levied on an imported car, by a small margin. So if the locally manufactured car has the quality matching that of the imported cars, they'll sell better.

2. Customers will be getting more features and better quality products for what they pay for, both from indian brands as well as from the European brands

3. When the overall price is reduced, there will be much more people migrating from two-wheelers to cars, and most of them will consider cars from local brands which will be cheap to own and maintain. The end result will be a rise in the total sales volume, not just a replacement of Indian branded cars by German ones.

4. Anyway, the cost of manufacturing is more in EU than in India. So definitely they can't beat Indian brands in pricing, if Indian cars are priced right. Besides, maintenance, service and spares will be easier and cheaper for Indian cars.

6. Currently the edge imports are having over Indian brands is in quality. If Tata, M&M or HM is providing a quality product at a cheaper rate, people will go for it. I will not buy an overpriced Honda if Tata has a product having similar quality at a lower price.

Agree with most of what you said


Quote:
Originally Posted by EssYouWe View Post
No, as much as scams are inexcusable, you must understand that taxation is indispensable for the government. There will be no development, no roads to drive your bimmers on. Let us not raise our voices against something that will always be there.
And especially people with the ability/purchasing power to buy imports, will have to bear the cost of nation building. You must remember these are reasonably rich people.





I completely disagree with you here. Which common man are you talking of? The one on his beat up scooter going to office everyday? He doesn't care about CKDs. Or do you talk of that naked beggar child at the traffic signal? He doesn't care if the rich sahib drives up in a bimmer or a Toyota. All he wants is food twice a day.

And you talk about fuel hikes? Why should the rich man's joyrides be subsidized by the government? Will you stop driving if petrol prices hit 70? No, because you can take that hit with no more than a grumble.

If this government can pass the food security bill and implement UID correctly, the face of this nation will change.

However, you are very correct in criticizing the scams and governance issues. I sincerely hope that these are sorted soon and the process of nation building starts.

@Mods: I understand that this post is off topic. Please feel free to delete it, if that is what is required.
Quote:
Originally Posted by cuboid View Post
^^^ Agree with you on most of the points. But can you tell me why should subsidized Diesel be used for a 20-lakh rupee SUV? I think the direct reimbursement of subsidy (with help from UID) should extend to diesel as well. Don't know how they would implement though.

Mods, again this is OT - delete if required.
The so called "rich people" are the ones paying the highest taxes (in most cases) Do you know the the EDC / IDC paid for properties in Gurgaon ?? They could be enough to provide brand new roads / 24x7 electricity / sewage & police personnel (which are at present in severe short supply in Gugaon)......are you aware that Gurgaon generates probably the HIGHEST revenue for registration of properties. Where does all that money go ?? Surely not in development. Do you know what it costs to get a sarkari posting in Gurgaon ??


LOL the government has enough funds if they are not diverted to "you know where"

Last edited by Ricky_63 : 15th March 2011 at 21:13.
Ricky_63 is offline  
Old 15th March 2011, 23:02   #147
Senior - BHPian
 
EssYouWe's Avatar
 
Join Date: May 2009
Location: Lucknow
Posts: 1,392
Thanked: 15 Times
Default Re: Prices of Imports set to come down drastically !!

Quote:
Originally Posted by cuboid View Post
^^^ Agree with you on most of the points. But can you tell me why should subsidized Diesel be used for a 20-lakh rupee SUV? I think the direct reimbursement of subsidy (with help from UID) should extend to diesel as well. Don't know how they would implement though.

Mods, again this is OT - delete if required.
Absolutely! I am all for subsidies reaching the right target audience. Not only diesel, but also LPG!

Quote:
Originally Posted by Ricky_63 View Post
The so called "rich people" are the ones paying the highest taxes (in most cases) Do you know the the EDC / IDC paid for properties in Gurgaon ?? They could be enough to provide brand new roads / 24x7 electricity / sewage & police personnel (which are at present in severe short supply in Gugaon)......are you aware that Gurgaon generates probably the HIGHEST revenue for registration of properties. Where does all that money go ?? Surely not in development. Do you know what it costs to get a sarkari posting in Gurgaon ??


LOL the government has enough funds if they are not diverted to "you know where"
I know that corruption exists. Even then, we can not throw up our hands in despair. We must not give up on the success story that India can be.

Also, do you know that the number of people filling IT with salaries 20+lacs is lower than the number of BMWs and Mercs sold every year. As I said, I sincerely hope poor governance does not stop us from being the power that we can be.
EssYouWe is offline  
Old 6th June 2011, 19:14   #148
BHPian
 
Join Date: Oct 2007
Location: Sydney/Cochin
Posts: 289
Thanked: 154 Times
Question Re: Prices of Imports set to come down drastically !!

Any further updates on the subject? Is the government still considering the FTA, or is it dropped?
Joe M is offline  
Old 6th June 2011, 20:02   #149
BHPian
 
patil's Avatar
 
Join Date: Oct 2007
Location: Shorapur
Posts: 344
Thanked: 55 Times
Default Re: Prices of Imports set to come down drastically !!

Its already June and the agreement was supposed to have been signed by April. Is it still on the agenda or it was just a rumor which will never be acted upon.

I personally feel that the Indian Government considering its policies on Auto sector will exclude automobiles from any free trade agreements.

Anyways being auto enthusiasts lets hope for the best and hope that it happens.
patil is offline  
Old 13th June 2011, 18:37   #150
BHPian
 
Join Date: Aug 2010
Location: Bangalore
Posts: 946
Thanked: 295 Times
Default Re: Prices of Imports set to come down drastically !!

I think this off topic, but I still want to put this info here. The Govt. had imposed 50% duty on CKDs has now brought it down to 20% after all the representations and lobbying by the auto industry that may have worked. Still it is double as compared to 10% which was the earlier norm. That said I do not see any light at the end of this tunnel for imports, especially when the industry is battling for CKDs!
Mods: I think this thread has lost its purpose.
zulfi hansi is offline  
Closed Thread


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
Will Hyundai Prices come down? - India, South Korea ink free trade pact wildon The Indian Car Scene 2 9th August 2009 19:35
Please help....FE down drastically after II servicing abhaybakshi Technical Stuff 6 4th April 2007 03:08


All times are GMT +5.5. The time now is 12:38.

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