Budget 2014 - Car prices to come down due to reduction in Excise Duty!

IndigoXLGrandDi · 13th December 2014, 15:39

Any update on whether the Excise Duty will remain at current rate or any increment is on cards in Jan 2015?

FidoDido · 19th December 2014, 07:53

This is the biggest question haunting all prospective car buyers. Should we postpone our purchase till January for a 2015 model or buy it right now.

If anybody has an answer or expert opinion or insider information then please help us.

rnidumolu · 19th December 2014, 11:13

If we observe the way the current government is functioning, I am foreseeing a rise in the excise duty. This hike will help the government in increasing the revenues and will not affect the industry as the bad sentiment in the market is perishing. But again fingers crossed.

Thanks,

sun_king · 19th December 2014, 11:29

Quote:

Originally Posted by IndigoXLGrandDi

Any update on whether the Excise Duty will remain at current rate or any increment is on cards in Jan 2015?

Quote:

Originally Posted by FidoDido

This is the biggest question haunting all prospective car buyers. Should we postpone our purchase till January for a 2015 model or buy it right now.

If anybody has an answer or expert opinion or insider information then please help us.

Recalling an older post in the page before, the Excise duty cut can go up to March 2015. Take caution here, the report does not say that it will be extended, it mentions that the government could consider an extension.

Quote:

Originally Posted by sarathlal

The excise duty cut period is now extended for three more months, with the validity expiry date set as March 2015.

ET has quoted Minister for Heavy Industries, Mr. Anant Geete as;

The government has earlier extended the excise duty incentive by six months to December 31 2014.

Source: http://auto.economictimes.indiatimes...geete/42466613

RSR · 28th February 2015, 13:14

It looks like the Finance Minister has snubbed SIAM and other auto industry related lobbies by completely ignoring their demands in his Budget '15 speech.

It doesn't look like there is anything in the Budget that will bring cheer to the automobile & allied industries such as component makers, tyre manufacturers etc. In fact, I think there was absolutely no mention of these fields.

Or is there anything in the fine print that is being missed by the media?

saket77 · 28th February 2015, 13:22

On the other hand, servicing your car at ASC becomes even more expensive as the service tax is hiked to 14%. I am disappointed as an individual with this budget as the increase in service tax will in turn raise your expenses in many realms, like your phone bill, railway tickets, cable bill, and lots more; but there is not a single relief to individuals in terms of tax. Even the tax slab is unchanged. So what happens effectively is that your expenses go higher due to increase in service tax, but your savings do not since you do not get any relief. End of rant!

Regards,
Saket

heydj · 28th February 2015, 13:26

I don't really think we need any sort of subsidies for Car industry. People will buy cars irrespective of the cost going up or down. A person buying a 5 lack car is hardly going to put off his purchase if the cost goes up by few thousand. If anything the money saved here can be better utilized elsewhere like giving incentives to car manufacturers for putting safety features in all cars and models. We need safe cars not cheap cars!

aim120 · 28th February 2015, 13:57

They only said that the current benefits for hybrid vehicles will continue.

So overall this year our expenses will go up due to the increase in service tax.

But there will be a drop in import duties on High speed diesel.
http://indiabudget.nic.in/ub2015-16/cen/cus0715.pdf

arakhanna · 28th February 2015, 19:21

While not connected with the budget, the price of diesel and petrol have been raised by around 3 per litre. The culprit, higher excise and crude prices rising.

http://www.thehindubusinessline.com/...cle6945870.ece

However the fact that the excise cut was rolled back in December 2014, OEM's would not be expecting much from this budget.

Markets were expecting that the inverted duty structure on tyres/rubber would be reversed, but no avail.

13th December 2014, 15:39	#196
IndigoXLGrandDi Senior - BHPian Join Date: Aug 2009 Location: Solapur (MH-13) Posts: 1,784 Thanked: 567 Times	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! Any update on whether the Excise Duty will remain at current rate or any increment is on cards in Jan 2015?
	() Thanks

19th December 2014, 07:53	#197
FidoDido BHPian Join Date: Dec 2014 Location: Gurgaon Posts: 72 Thanked: 47 Times	This is the biggest question haunting all prospective car buyers. Should we postpone our purchase till January for a 2015 model or buy it right now. If anybody has an answer or expert opinion or insider information then please help us.
	() Thanks

19th December 2014, 11:13	#198
rnidumolu BHPian Join Date: Aug 2007 Location: Hyderabad Posts: 222 Thanked: 90 Times View My Garage	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! If we observe the way the current government is functioning, I am foreseeing a rise in the excise duty. This hike will help the government in increasing the revenues and will not affect the industry as the bad sentiment in the market is perishing. But again fingers crossed. Thanks,
	() Thanks

28th February 2015, 13:14	#200
RSR Senior - BHPian Join Date: Nov 2011 Location: Chennai Posts: 1,803 Thanked: 6,579 Times	Impact of Union Budget 2015 on auto industry? It looks like the Finance Minister has snubbed SIAM and other auto industry related lobbies by completely ignoring their demands in his Budget '15 speech. It doesn't look like there is anything in the Budget that will bring cheer to the automobile & allied industries such as component makers, tyre manufacturers etc. In fact, I think there was absolutely no mention of these fields. Or is there anything in the fine print that is being missed by the media?
	() Thanks

28th February 2015, 13:22	#201
saket77 Distinguished - BHPian Join Date: Dec 2012 Location: Ranchi Posts: 4,395 Thanked: 12,020 Times	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! On the other hand, servicing your car at ASC becomes even more expensive as the service tax is hiked to 14%. I am disappointed as an individual with this budget as the increase in service tax will in turn raise your expenses in many realms, like your phone bill, railway tickets, cable bill, and lots more; but there is not a single relief to individuals in terms of tax. Even the tax slab is unchanged. So what happens effectively is that your expenses go higher due to increase in service tax, but your savings do not since you do not get any relief. End of rant! Regards, Saket
	(3) Thanks

28th February 2015, 13:26	#202
heydj BHPian Join Date: May 2014 Location: Rotterdam/Delhi Posts: 535 Thanked: 734 Times	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! I don't really think we need any sort of subsidies for Car industry. People will buy cars irrespective of the cost going up or down. A person buying a 5 lack car is hardly going to put off his purchase if the cost goes up by few thousand. If anything the money saved here can be better utilized elsewhere like giving incentives to car manufacturers for putting safety features in all cars and models. We need safe cars not cheap cars!
	(1) Thanks

28th February 2015, 13:57	#203
aim120 BANNED Join Date: Dec 2012 Location: bangalore Posts: 788 Thanked: 2,499 Times Infractions: 0/1 (5)	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! They only said that the current benefits for hybrid vehicles will continue. So overall this year our expenses will go up due to the increase in service tax. But there will be a drop in import duties on High speed diesel. http://indiabudget.nic.in/ub2015-16/cen/cus0715.pdf Last edited by aim120 : 28th February 2015 at 14:02.
	() Thanks

28th February 2015, 19:21	#204
arakhanna BHPian Join Date: Oct 2014 Location: Mumbai Posts: 55 Thanked: 190 Times	Re: Budget 2014 - Car prices to come down due to reduction in Excise Duty! While not connected with the budget, the price of diesel and petrol have been raised by around 3 per litre. The culprit, higher excise and crude prices rising. http://www.thehindubusinessline.com/...cle6945870.ece However the fact that the excise cut was rolled back in December 2014, OEM's would not be expecting much from this budget. Markets were expecting that the inverted duty structure on tyres/rubber would be reversed, but no avail.
	() Thanks