Small cars to cost less

goldie_malhotra · 28th February 2006, 14:00

Just heard that PC has announced 16% cut in excise duty for small cars in 2006-07 budget

And MUL and Hyundai announced cuts of upto 20k on all their models starting tomorrow.

The details are here
http://in.rediff.com/money/2006/feb/28bud13.htm

suman · 28th February 2006, 14:11

Quote:

Originally Posted by goldie_malhotra

Just heard that PC has announced 16% cut in excise duty for small cars in 2006-07 budget

And MUL and Hyundai announced cuts of upto 20k on all their models starting tomorrow.

The details are here
http://in.rediff.com/money/2006/feb/28bud13.htm

Not a 16% cut but the rate is down to 16% from 24%; discussions on below thread -

http://www.team-bhp.com/forum/shifti...-comments.html

Zappo · 28th February 2006, 14:12

Yes... it was expected... I am ruing the fact that I could not pick up enuff stocks of Telco and Maruti... They are shooting through the skies now

kb100 · 28th February 2006, 14:49

but why only the small cars??.. WAAAY???

sbasak · 28th February 2006, 14:55

Quote:

Originally Posted by kb100

but why only the small cars??.. WAAAY???

Probably govt. now wants 2-wheeler population to upgrade to small cars

goldie_malhotra · 28th February 2006, 15:01

Quote:

Originally Posted by suman

Not a 16% cut but the rate is down to 16% from 24%;

Thats true - guess I got carried away there and forgot to read clearly

I was wondering though - the excise duty has been cut by 8%, but the reduction in overall prices seems to be around 5-7% - how is that possible ?
Is the excise duty that high ??

kpzen · 28th February 2006, 15:04

My neighbour bought an alto yesterday....

sandeepmdas · 28th February 2006, 15:07

Quote:

Originally Posted by kpzen

My neighbours bought an alto yesterday....

Tell 'em knowledge is Team-BHP....

Zappo · 28th February 2006, 16:18

Quote:

Originally Posted by kpzen

My neighbour bought an alto yesterday....

Oh don't worry... I really doubt he made much loss there. I am sure he got a lot of goodies and freebies including price cuts which will now go but compensated to some extent by the reduction in prices. In fact more often than not the reductions are many a times less than what you were getting in discounts before budget. This happens because people stop buying in anticipation and car companies and their dealers in their desperation to push volumes give huge freebies and discounts to lure possible buyers. Many a times it is more than the possible reductions after budget and even the manufacturers and their dealers know that. But then such is life

P.S. : Btw your signature seems like a lesson that you picked up in recent times dude

BuRnT RuBbEr · 28th February 2006, 18:00

why 1200 cc

revtech · 28th February 2006, 18:13

Quote:

Originally Posted by sbasak

Probably govt. now wants 2-wheeler population to upgrade to small cars

what is the government crazy.as it is theres no place for the current number of cars and they want to add to that.

so that means swift wont benefit from this as its 1.3 L

Rev

BuRnT RuBbEr · 28th February 2006, 18:34

Quote:

Originally Posted by revtech

what is the government crazy.as it is theres no place for the current number of cars and they want to add to that.

so that means swift wont benefit from this as its 1.3 L

Rev

exactly. and they are only ensuring that the firms keep churning out powerless boxes.

swift JTD should qualify.

this is going to increase the sales, not the quality.

wont anyway change minds of those who are going for better machines.

( by the way, aveo hatch gonna fit???? anybody??

)

Zappo · 28th February 2006, 18:50

Quote:

Originally Posted by BuRnT RuBbEr

( by the way, aveo hatch gonna fit???? anybody??

)

I do not think so. Aveo will cent percent be more than 1200cc. Rest assured about that. Even a car that says 1.2 will actually be a little more than 1200cc and hence will never fall in the bracket.

So yes, government wants more and more people to buy smaller cars like M800 and Altos. That Santro and WagonR fall into this category is a matter of sheer luck.

Government wants to encourage people to shift over to safer transport modes and most of those opt for entry level ones like M800 and Altos.

Interestingly, the other side of the coin is that it will increase the consumption of petroleum products which are mostly imported... basically our forex outgo will shoot up.

trinadha · 28th February 2006, 19:57

kpzen is having happy times lol!!!

amit · 28th February 2006, 20:33

Doesn't make any difference. 2 months from now MUL, Hyundai and TATA will increase prices back to pre-budget levels citing rising input costs.

28th February 2006, 14:00	#1
goldie_malhotra BHPian Join Date: Nov 2005 Location: New Delhi Posts: 757 Thanked: 12 Times	Small cars to cost less Just heard that PC has announced 16% cut in excise duty for small cars in 2006-07 budget And MUL and Hyundai announced cuts of upto 20k on all their models starting tomorrow. The details are here http://in.rediff.com/money/2006/feb/28bud13.htm
	() Thanks

28th February 2006, 14:12	#3
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,918 Thanked: 2,652 Times	Yes... it was expected... I am ruing the fact that I could not pick up enuff stocks of Telco and Maruti... They are shooting through the skies now
	() Thanks

28th February 2006, 14:49	#4
kb100 Senior - BHPian Join Date: Feb 2006 Location: Bangy Boy! Posts: 1,555 Thanked: 21 Times	but why only the small cars??.. WAAAY???
	() Thanks

28th February 2006, 15:04	#7
kpzen Senior - BHPian Join Date: Oct 2004 Location: Faridabad Posts: 5,610 Thanked: 1,876 Times View My Garage	My neighbour bought an alto yesterday.... Last edited by kpzen : 28th February 2006 at 15:13.
	() Thanks

28th February 2006, 18:00	#10
BuRnT RuBbEr BHPian Join Date: May 2005 Location: DL 1 Posts: 367 Thanked: 13 Times	why 1200 cc
	() Thanks

28th February 2006, 19:57	#14
trinadha BHPian Join Date: Aug 2005 Location: HYDERABAD Posts: 244 Thanked: 22 Times	kpzen is having happy times lol!!!
	() Thanks

28th February 2006, 20:33	#15
amit Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 3,717 Thanked: 449 Times	Doesn't make any difference. 2 months from now MUL, Hyundai and TATA will increase prices back to pre-budget levels citing rising input costs.
	() Thanks