[ghodlur]

I am surprised that the amount reduced is almost same for the Figo and the Ecosport. Considering that the excise rate drop is same 4% for both the segments shouldnt there be a considerable difference in the price reduction too? Surely Figo and Ecosport have a sizeable difference in the exshowroom cost.

Is the excise applicable on the exshowroom cost or left to the manufacturers to decide the amount of drop in prices?

[fiat_tarun]

Originally Posted by gemi_kk

Ford is the first company to pass on the newly passed tax benefits to its customers.

gemi_kk - Ford is actually one of the last to pass on the benefit !

http://www.team-bhp.com/forum/indian...e-duty-10.html

[veedub89]

Originally Posted by ghodlur

I am surprised that the amount reduced is almost same for the Figo and the Ecosport. Considering that the excise rate drop is same 4% for both the segments shouldnt there be a considerable difference in the price reduction too? Surely Figo and Ecosport have a sizeable difference in the exshowroom cost.

Is the excise applicable on the exshowroom cost or left to the manufacturers to decide the amount of drop in prices?

The excise duty is calculated on the price that the manufacturer sells the car to the dealer at.
The ex-showroom price is the price that the dealer sells the car to you at. This obviously includes his margin.

So the difference in price drop that you see in between the Figo and Ecosport will be because of the difference in prices to the dealer, by Ford, for these two cars.

I hope I made it clear and didn't confuse you further.

[ghodlur]

Originally Posted by veedub89

The excise duty is calculated on the price that the manufacturer sells the car to the dealer at.
The ex-showroom price is the price that the dealer sells the car to you at. This obviously includes his margin.

Confused. The prices which are quoted by manufacturers on their website is not the manufacturing cost but the price at which the dealer would sell the car to the customer? I was under the impression that the prices on the website are the factory prices. The dealer margin is taken care seperately and not through that displayed price. Why would manufacturer do that, I find that silly?

[S_U_N]

I am confused. Did Ford do something different here?
I think this thread has to be merged with the excise duty discussion thread.

[veedub89]

Originally Posted by ghodlur

Confused. The prices which are quoted by manufacturers on their website is not the manufacturing cost but the price at which the dealer would sell the car to the customer? I was under the impression that the prices on the website are the factory prices. The dealer margin is taken care seperately and not through that displayed price. Why would manufacturer do that, I find that silly?

Well you are sort of correct there.

The ex-showroom prices are decided by the manufacturer taking into account the dealer margin. There is no other way of compensating the dealer.
Think about it this way, the manufacturer decides the prices to the customer by fixing the dealer cut/margin.
However the excise duty is levied at the manufacturing end and not at the dealer end. Therefore the cut will happen on the factory cost (and ultimately lead to a reduction on the ex-showroom cost).
But since the factory cost is different for the two cars the reduction will be different.

[ani_meher]

^^^ But still it seems Ford hasn't passed on the full benefit in case of ecosport. If we go by the reduced price, it seems that Ecosport costs only 10% more to make than Figo!

[Maky]

Just In!

For EcoSport base variant now at 6.15L Ex-Showroom.
http://www.autocarindia.com/auto-new...kh-373353.aspx

[Bluestallion]

Originally Posted by aniketi

Can somebody confirm please : This duty cut is applicable from 1st April 2014 or with immediate effect? I am not sure about it. Please confirm. My friend want to buy vehicle immediately and he is happy if he can save some money

The cut is from immediate effect till June 20th or so. However, whether a particular vehicle would be cheaper or not and by what amount depends on to what extent the manufacturer wants to pass on the savings to customers. Some manufacturers have already announced that they will pass on (entire) savings to customers. Others have announced that they will reduce prices (but not pass on entire benefit). I inquired about a Maruti Ritz and its prices have reduced by about 14K on road in BLR for the mid variant.
I enquired about XUV 500 W4 though and on road prices have reduced from 13.75 to 13.41 - that's about 34K. Considering that SUVs have got 600 basis points reduction in duty (30 pc to 24 pc) my belief is it should have been much higher - it is clear the manufacturer has not passed on the entire benefit to the customer.

[Achekay]

Originally Posted by ajay_satpute

What was the price before the price cut?

It was inevitable anyway. First the KTM 390 killed the pricing benchmarks and now HD 750 hit another blow. Just wait and watch, almost all 150 cc and above two wheelers' prices will come down significantly. Good times for the end customers.

Ajay Satpute the price before the price cut was INR 96647 in Nagpur. Now the base price ex-Pune is INR 826xx and 933xx OTR Nagpur.
This just in that KTM slashed 200 Duke price to INR 1,44,xxx from INR 1,48,031 OTR Nagpur. Duke 390's come down too, but by how much the Nagpur showroom staff could not supply info.
Looks like a powerparts windshield is a go for me.

[nik hill]

Originally Posted by Bluestallion

The cut is from immediate effect till June 20th or so. However, whether a particular vehicle would be cheaper or not and by what amount depends on to what extent the manufacturer wants to pass on the savings to customers. Some manufacturers have already announced that they will pass on (entire) savings to customers. Others have announced that they will reduce prices (but not pass on entire benefit). I inquired about a Maruti Ritz and its prices have reduced by about 14K on road in BLR for the mid variant.
I enquired about XUV 500 W4 though and on road prices have reduced from 13.75 to 13.41 - that's about 34K. Considering that SUVs have got 600 basis points reduction in duty (30 pc to 24 pc) my belief is it should have been much higher - it is clear the manufacturer has not passed on the entire benefit to the customer.

Actually xuv was earlier in the bracket of 27% and not 30% hence the reduction in prices is not as per your expectations

[S_U_N]

I did some calculations with another BHPian who recently purchased a Fortuner. Based on data provided by him, I did some math and estimated the new onroad price in Pune and also compared it with the actual new onroad price in Pune.
Insurance is not calculated, since Toyota charges much higher on that and one can always go to outside market to buy cheap insurance.

In my opinion, Toyota has not passed on the full benefit to the customer.
Again, these are just my calculations. I am not sure excise department does the valuation of cars.


There should have been a decrease of around 1.3 lac on the onroad price, but instead, the decrease is around 60% of that figure.

Edit: Corrected some figures.

[abhinav.gupta88]

There is a figure of dealer's margin in this also. For a 25 lakh car, I would assume a prce of not more than 15-16 lakh as the basic value, i might be wrong but that would translate to somewhere around the 100000 figure

[filcord]

Was looking at Toyota Liva G petrol(with ABS package) in Goa.
The earlier ex-showroom quote given to me was Rs 5,55,268/- Luckily the FinMin announced his duty cut the next day. Today the new ex-showroom price is Rs 5,38,939/-. Just booked it.
Probably the first time ever I have bought something after a price cut!

[neel911]

Originally Posted by S_U_N

In my opinion, Toyota has not passed on the full benefit to the customer.
Again, these are just my calculations. I am not sure excise department does the valuation of cars.

This has been across the board. The Auto industry is going through tough times and this is one way where they can make up (even though it may be marginally). I doubt if any auto manufacturer would pass the entire benefits to customer. Even the dealer margins have been slim so this way they can compensate them better as well. Also we are talking only about 4 months of this excite cut to be effective (the new government can ofcourse continue or revise it slightly).

One thing that I did notice is that the cuts are more on models which are not that popular to make it more attractive to potential buyers. Even at times, the entry level variant, the benefit passed is more to make an attractive starting price of a model.