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Old 24th February 2011, 16:54   #76
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Default Re: Prices of Imports set to come down drastically !!

I just want the Ducati Multistrada 1200 for 10-12 lakhs and i'll be a happy man.Yes yes i know i hate doodaties for thier unreliabilities but this is one bike i have my heart set on.

But then maybe if Triumph and KTM and Aprilia come in with their Tiger and SuperMoto T and the Dorsoduro respectively i might have a super hard time deciding.Throw in the R1200GS into it and i'll just hang myself!

:P
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Old 24th February 2011, 17:24   #77
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Default Re: Prices of Imports set to come down drastically !!

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Originally Posted by navpreet318 View Post
I just want the Ducati Multistrada 1200 for 10-12 lakhs and i'll be a happy man.Yes yes i know i hate doodaties for thier unreliabilities but this is one bike i have my heart set on.

But then maybe if Triumph and KTM and Aprilia come in with their Tiger and SuperMoto T and the Dorsoduro respectively i might have a super hard time deciding.Throw in the R1200GS into it and i'll just hang myself!

:P


Hey

You are getting all carried away !! Not sure if the relaxation will be on bikes too - YET. Though logically it should be




Cheers
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Old 24th February 2011, 17:30   #78
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Default Re: Prices of Imports set to come down drastically !!

@MAC187

Price especially in India is very emotive. Especially for car fans, me for one.

Unfortuantely for me i work for one of the companies in question, originally from England now here in India.

Heres the thing theres a whole long winded answer but then it'll get boring to read, Import Duty makes a huge difference, that is Govt dependant. Only the powers that be can control that. They affix the duty on the ex-factory price plus shipping, handling and whatever.

They end up with a huge number.

I'm not saying that they will give 30% of an entire range!!!
The imported models (CBU's) will have a substantial reduction.

What will happen is there will be a rejigging of the rest of the product price range.

When the most expensive vehicle you sell comes down in price you have to make adjustments in the rest of the products.

Its the same thing as when computers first came here!!!

Just as a footnote the CE model has caused a stir in countries like singapore, Malaysia and China, with duty in ridiculous figures.

once duties fall and sales increase sticker prices will fall.

High Tax low sales = High Prices

Don't for a second think though that manufacturers are bothered... they are, they know full well vehicles are compared price for price spec by spec from country to country by potential buyers.....

As an optimist i'm looking forward to April, lets see what it brings......

Until then i'm one of the people who are continually being asked to look for new ways to lowers costs.....

I'm the first to want to see more affordable Prestige cars.
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Old 24th February 2011, 17:30   #79
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Default Re: Prices of Imports set to come down drastically !!

Hi,

I'd like to say that:

1. Till a few years back the govt. believed that cars were a luxury & hence huge exices duties. Later it believed that cars till 1200 cc were not luxury & lowered duty on them. Today it believes that all cars above are luxury and hence heavy excise duty.
2. To save Indian industry heavy customs,cvd etc.levied on imports.
3. Maruti set up by Mr. Sanjay Gandhi & later withe the "blessings" of the govt. & huge incentives the co. took off.
4. The japs n Koreans jump onto the bandwagon,after watching the success of maruti, by setting factories here.
5. Europeans make large/safer cars were not sure of volumes,red tape n hence continued expensive imports.
6. Competition always brings about the best as in the case of mobile telephony.

But we need a Mr, Sukhram to open up the indian auto industry otherwise it remains a pipe dream.

Regards
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Old 24th February 2011, 17:51   #80
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Default Re: Prices of Imports set to come down drastically !!

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Originally Posted by mac187 View Post
They may have entered the market at a tempting price band but i doubt that they would lower the prices of their cars by 30% (whatever mentioned in the article) and pass on all the benefit to the customer. Instead this duty cut would help them pocket a higher margin. That would not have any real benefit to customers now, will it?
buddy, get real! We are seeing BMW 3 series get a stripped down CE version. They are fighting among each other to keep the luxury crown. A price cut is essentially guaranteed. Thats the thing with a buyers market and capitalism right? Same with others - Accord prices would come down significantly - those Superb's will take a beating.

Now, if the govt actually signs it. Hope it does - soon
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Old 24th February 2011, 17:59   #81
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Default Re: Prices of Imports set to come down drastically !!

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Originally Posted by Ricky_63 View Post
Hey

You are getting all carried away !! Not sure if the relaxation will be on bikes too - YET. Though logically it should be




Cheers



It doesn't harm in dreaming.hehe.

Anyways i have to buy another bike in the coming financial year.so just hoping i'd save some money for the fuel and ownership costs.
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Old 24th February 2011, 19:42   #82
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Default Re: Prices of Imports set to come down drastically !!

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why penalise the customers? ...the manufactures should fend for themselves!!
I think we should look at the overall picture. While I agree that this may seem like penalising the customer but then we need to understand that had we not allowed the local manufacturers to flourish then today a TATA would not have bought a JLR and a Mahindra would not have bought a Ssyanyong.

I am sure that the government will weigh the options well before getting into any kind of an agreement which jeopardises the Indian Auto industry.

Let Audi, Volvo and Saab setup plants in India like VW & Mercedes. This will mean sourcing many parts from Indian Auto anciliary companies which will only improve quality, bring down prices and eventually benefit the customer. Not to mention the jobs created here.
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Old 24th February 2011, 20:01   #83
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Default Re: Prices of Imports set to come down drastically !!

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Originally Posted by ptushar View Post
I think we should look at the overall picture. While I agree that this may seem like penalising the customer but then we need to understand that had we not allowed the local manufacturers to flourish then today a TATA would not have bought a JLR and a Mahindra would not have bought a Ssyanyong.

I am sure that the government will weigh the options well before getting into any kind of an agreement which jeopardises the Indian Auto industry.

Let Audi, Volvo and Saab setup plants in India like VW & Mercedes. This will mean sourcing many parts from Indian Auto anciliary companies which will only improve quality, bring down prices and eventually benefit the customer. Not to mention the jobs created here.
TATAs, Birlas, & Mahindras and other Indian companies should first provide global quality on their cars & services first. Secondly price the quality products on par at global prices . Aquisition is their business decision. Why Indian car buyers to be fleeced with their political lobbying clout

Tatas, Mahindras must develop Automatic transmission for their range of carsgs and SUVs and Govt must regulate Indian manufacturers to offer ABS and Airbags as mandatory right from base model. Indian govt must first rationalize uniform vehicle registration, road taxes, other duties and taxes across country and car companies can jointly develop seperate toll speed highways (not renaming existing NH as toll road)

Indian politicians and Industrialists with thier un holy aliances &vested interested tie upshave made roberry legalized with the kind of taxes and duties along with their inferior quality in product and services.

Last edited by harimakesh : 24th February 2011 at 20:06.
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Old 24th February 2011, 20:01   #84
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Default Re: Prices of Imports set to come down drastically !!

@ptushar

Well said.......

He's right, with the duty system in place, it gave homegrown companies a chance to consolidate and get into a position to buy out foreign companies, as he mentioned.

The other point is that with a duty reduction it will only apply to the premium market, the core sales of small / mid size indian built cars will be unchanged, with homologation laws in-check the home industry will be intact and safe.
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Old 25th February 2011, 11:02   #85
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Default Re: Prices of Imports set to come down drastically !!

If the price does come down by 30-40% on CBUs can you imagine what that will do to the used CBU market? 2 year old 7 series for 30L?
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Old 25th February 2011, 13:24   #86
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Default Re: Prices of Imports set to come down drastically !!

Gentlemen - Even if the FTA does come into play (which it won't), the odd 30% in duty/excise for CKD's is not the final cost. Keep in mind, there are labor, factory overhead and profits to be accounted for in assembling the car & fixing the ex-showroom price.

Last edited by Speeding@160mph : 25th February 2011 at 13:27.
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Old 25th February 2011, 14:20   #87
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Default Re: Prices of Imports set to come down drastically !!

Guys,

Our government has taken such steps which seemingly promise to bring help to the end user but actually don't.

For e.g. sometime back government reduced the tax on air fuel to help the airlines lower the ticket costs. However, no such thing happened. The airlines after gobbling up the tax rebate, gave some funny talk 'the operating costs have gone up....oh phleeease'. Net net, the benefit which was meant for the customer actually helped the airline owners reap fatter profits. OF course, I am assuming that nobody from Govt did this for vested interest.

Now, if any such agreement does go through (In India, a lot of such things remains plans), the government should force the companies to pass the benefit to the customers.

-->Taking vague figures, say the Import duty come down by 110% to 70%.
-->This helps the car makers to price their cars lower by about 35%
-->The government should force the car makers, to pass at least 80%-90% of the reduction (35%)to the Customers.
--> The Customer benefit from lowering of car prices.
--> The car makers enjoy increased sales, with slightly better profit margin.

Now, I am suggesting all this should be written. else, the car makers will gobble up the incentive , leaving peanut discounts to customer.

Last edited by Abhi_Automobile : 25th February 2011 at 14:22.
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Old 25th February 2011, 14:24   #88
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Default Re: Prices of Imports set to come down drastically !!

Don't worry, if the actual benefit to car companies is 35% by way of duty reduction, then be assured that atleast 25% is passed on to customer.
The reason is that airlines have lot of cartelization, and automobiles have cut throat competition.
Think of it this way.
Company A may not pass the benefit and price its SUV at 40 lakhs.
Company B which has a direct competing model can price it at 25 lakhs, eating away the sales.

Remember, BMW and Mercedes are also trying to expand their customer base. The X1, which cuts into 20L territory is a shining example.
In the end its profit which matters to companies.

If they can increase their sales by more than 35% by passing on 35% benefit, they will pass the benefit. If they think sales increase will be marginal, they won't pass on the benefit.
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Old 25th February 2011, 14:27   #89
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Default Re: Prices of Imports set to come down drastically !!

Duties should be lowered on car imports but yes it is also true that interests of companies manufacturing locally should be protected. European manufacturers believe in this and they say lower the duties on cars which are above 2000cc. There are few product options in this category and also considered as the luxury mark. Now the major chunk of sales in India comes from cars under Rs.10Lakh. So even if duties are lowered its only going to benefit the luxury segment buyers. Well the Japs, Koreans would be miffed by this but share of luxury cars in overall sales is marginal. Now since these companies are so big maybe they can pressurize their Governments to sign similar Free Trade Agreements with India ??

Just like fellow Bhpians I aspire for a German luxury car someday but not at cost which becomes double due to imports.
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Old 25th February 2011, 14:59   #90
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Default Re: Prices of Imports set to come down drastically !!

As far as labour of assembling the ckd kits in India would be cheaper than say in Germany wouldnt it?

So costs should definately come down by a decent margin.

VW has set up shop here so should the other germans now that they see the volumes
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