[karan561]

This budget clearly indicates it is not a good time for imported cars(CBUs) in India.

+ adding to the fire the resale value of the premium cars / super cars will go up too, so people who were looking forward to buying an 2nd hand vehicle would also start to face the music from their 1st owners or the irritating dealers/middlemen.

Regarding the hike on SUV prices;

I think previously FM was only suppose to target the "Diesel" SUVs but with this move he has shown some equality

[ajmat]

Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.

The imported car duty is a killer. However Mercedes and BMW are not that badly affected as the S class and soon the 7 are assembled in India. I would expect a shortage of Q3's until production actually started.

Am sure the fat cats wil lobby the government to reduce the duty revision

[shabash]

I am there goes my dream of owning a decent SUV by another inch or two. Wait does that matter? No it does not. My dear FM you can't deter me from buying my favorite SUV no matter what you do

Note from the Team-BHP Support Team: Please take the time to use proper punctuation as per Team-BHP rules. Avoid...typing...like...this.

[narayan]

Originally Posted by ajmat

Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.

The only issue is base or mid level model SUVs which were earlier <10lakhs ex showroom will now breach that mark and then trigger a higher road tax component as well. Which means, the impact to the customer is not just the excise duty increase ( which anyway is at an ex-works price ) but on the road tax as well. Both put together will badly hurt sales.

[Nilesh5417]

http://www.moneycontrol.com/news/bus...70.html#toptag

The country's largest car maker Maruti Suzuki India (MSI) today reported 7.89 per cent decline in its total sales at 1,09,567 units in February 2013.

The company had sold 1,18,949 units in the corresponding month last year, MSI said in a statement. In February this year, MSI had recorded domestic sales of 97,955 units compared to 1,07,653 units in the year-ago period, registering a fall of 9.01 per cent, it added.

The budget surely isn't going to make it any better.

[Vid6639]

The Times of India wrongly mentioned Civic as falling into SUV category because of ground clearance. The Civic GC as stated by Honda is 170mm (from brochure and website). Only if it's greater than 170mm will it now be a SUV.

The Altis on the other hand is 175mm.

[lurker]

Originally Posted by aroop

From the Maruti stable, the only victims are SX4, Kizashi and the Grand Vitara, none of which bring home any appreciable numbers. Maruti might as well consider them as showpieces.

The Ertiga just missed being a victim owing to its smaller engine.

Kizashi ground clearance is 145 mm, so it escapes.

[tsk1979]

Originally Posted by ajmat

Frankly, the SUV tax is an amount people will complain about and then eat it and pay up like manufacturer increases. Expect a slight amount of de-contenting- optional sat nav or similar to reduce impact. High end SUV's at the 20L+ range will be more affected.

The imported car duty is a killer. However Mercedes and BMW are not that badly affected as the S class and soon the 7 are assembled in India. I would expect a shortage of Q3's until production actually started.

Am sure the fat cats wil lobby the government to reduce the duty revision

I wonder how is the EU going to take this. India and EU have been in talks for long now. EU gives certain benefits to Indian made cars under some rule regarding "products from developing countries". As a result they expect something back. Now with duty increase, the FTA is going to be in a bigger mess.

[Dr.Abhi]

from the above discussion it is clear that all those personal vehicles which attracted excise of 27% will now get 30% excise. So it also includes any sedan whose petrol engine is above 1.2l and diesel engine above 1.5l.
So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive

[aroop]

Originally Posted by lurker

Kizashi ground clearance is 145 mm, so it escapes.

My bad. Thanks for pointing it out. I have been thinking like the people in the ministry: tax the bigger and expensive

[sukhoi30]

My take on this ...

1. Of late there has been a mushrooming of SUVs on Indian roads. Most of them diesel driven. Given the pressure on the Govt to reduce the subsidy on Diesel, the FM has increased the ED very marginally and only on SUV type vehicles. Anyone buying a SUV for around 10 - 20 Lakhs can surely pay up a little more.

2. SUVs do take up lot of parking and road space. But this reason cannot be for the increase. By that measure, Buses and Trucks take much more space :-) ... Anyway, FM did not want to convey that this is being done to reduce diesel dependent vehicles. Imagine, if he had raised it for all diesel driven vehicles ... The entire automobile industry would be going out of Indian market.

3. Defining an SUV is a bit tricky. I guess, a seven seater car with no boot could be safely called an SUV. Govt should come up with a clear definition to implement this in the right way. Otherwise, dealers can make a good profit by misinforming customers.

4. Taxis which are SUVs are exempted presumably to safe guard many transport companies providing Qualis, Bolero, Innova etc. as an alternate mode of transport.

[rock75]

Originally Posted by Dr.Abhi

from the above discussion it is clear that all those personal vehicles which attracted excise of 27% will now get 30% excise. So it also includes any sedan whose petrol engine is above 1.2l and diesel engine above 1.5l.
So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive

For petrol engines too 1.5 litre and above gets charged 27% (now 30%)and between 1.2-1.5 litre has 24% and below 1.2 and less than 4 meters has 12% excise duty.

[Sommos]

Originally Posted by Dr.Abhi

So the inference is VW Vento both petrol and diesel are going to be expensive as well as sx4 petrol
or
it doesnt means the shape of car,
its only cars above 4m and petrol engine above 1.2 and diesel above 1.5l are going to be expensive

Originally Posted by sukhoi30

Defining an SUV is a bit tricky. I guess, a seven seater car with no boot could be safely called an SUV. Govt should come up with a clear definition to implement this in the right way. Otherwise, dealers can make a good profit by misinforming customers.

Every thing is not written in the FM's budget speech.
The clarifications come through the Gazette Notification, which is already published and quoted by member Sarthak Gupta at post 56.

Originally Posted by sarthakgupta

Following is the new definition of SUV according to GoI:

"Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.
Explanation. - For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm and above."

As of now the intrepretation is that all the three conditions are to be fulfilled and as per the notification the shape has nothing to do with the ED rate. But GTO is coming up with some further clarifiaction on the issue that should clear all the doubts.

[tsk1979]

Originally Posted by sukhoi30

My take on this ...

1. Of late there has been a mushrooming of SUVs on Indian roads. Most of them diesel driven. Given the pressure on the Govt to reduce the subsidy on Diesel, the FM has increased the ED very marginally and only on SUV type vehicles. Anyone buying a SUV for around 10 - 20 Lakhs can surely pay up a little more.

The question is not about paying a little more. Its about fairness. Why should a sedan owner driving a car costing the same, with similar fuel efficiency, and same size pay less.
You do not make arbitrary laws. Laws have to be fair and based on logic, not on whim. Whimsical laws are those which lead to downfall of empires - See this
http://en.wikipedia.org/wiki/Muhammad_bin_Tughluq

[lurker]

Originally Posted by tsk1979

I wonder how is the EU going to take this. India and EU have been in talks for long now. EU gives certain benefits to Indian made cars under some rule regarding "products from developing countries". As a result they expect something back. Now with duty increase, the FTA is going to be in a bigger mess.

If the EU agreement finalizes, it would come under a special import regime and unlikely the general one. My strong instinct is that this tax on SUV's etc will go away next year because the auto lobby in India isn't insignificant and when the Euro free trade comes into affect it would again need a rationalization in taxes across board. The next Govt will have to bite the bullet and take the final call on the Euro free trade agreement excepting which Indian exports to Europe will also be made uncompetitive by imposition of additional EU anti-dumping taxes. And this tax on SUV's is basically the 'diesel vehicle tax' they were talking all along because all the popular models of UVs are diesel except for say a CRV or an Outlander who just happen to be unfortunate, at wrong place and wrong time.