[iVento]

Much awaited news for the auto industry.

Definitely coming month going to witness a spurt in the car sales; one reason being the reduction in excise duty and another reason to avail the depreciation benefit.

The best thing about this budget is that the FM offered the reduction across all the segments.

[abhinav.gupta88]

Originally Posted by rowhun

All the premium SUVs such as the ML, XC60, X3 etc, will hopefully see a shedding of close to 3 Lacs on their ex-showroom price.
Yum!
Even the Fortuner should see a price lowering of atleast 1.5Lacs.

The Jeep Wrangler should be introduced sometime now!

If I am not wrong, there cars are imported as CBUs.
And that there is no change in the duty structure at the Customs Level.

If both the above statements are correct, there would not be any change in any price of the cars.

[gurudutt]

Update: Just called up the Sales Advisor at Sireesh Auto, he says they will get to know by 20th of this month.

Was planning for a XUV 500, but not sure when will the price cut take effect. Also, the dealer currently has around 30 K discount on the W6 Variant, will he shelve that and effectively the price remains the same?

[satyamkaushik]

Excise cut plus the year end (march) discounts, this seems to be the perfect time to buy a vehicle.
Though it is till a wait & watch game, till the manufacturers actually transfer this excise cut as a price cut to the customers.
--
Satyam Kaushik

[volkman10]

Maruti , Tata and GM to reduce prices.

We will definitely pass on the benefits of these excise reductions to the consumers for our new dispatches from tomorrow (as applicable) and are working on the details of the exact reductions," a Tata Motors spokesperson

Prices cuts will happen immediately," Maruti chairman RC Bhargava told TOI here. Models that will get cheaper include the Alto, WagonR and Swift hatchbacks and others like the Ertiga MPV and Dzire sedan.

http://economictimes.indiatimes.com/...w/30566585.cms

[eq24]

Originally Posted by gsurya

This is an interesting one, I think Excise duty is applicable when the vehicle leaves factory gates, not when dealer raises your invoice, which would be your delivery date.

So will a manufacturer pass on the reduction to someone who is getting a delivery between today & when it is actually effective when signed by the President?

Update-

As I had not received any information from dealer, I directly phoned up Honda India in the morning and the Rep on the phone took my query and said, will pass on to concerned departments.

Just got a call from a Manager at Honda, that indeed the company is working on the announcement and will have some clarity on the same by around Wednesday. Some component of the price(excise) will be reduced and not whole as I understand. I do not know why whole is not passed on but as long as some is offered, I am happy.

Cars already at showrooms and in stockyards, will not see any reduction as excise will already have been paid. But I am thinking their prices will be reduced as well to avoid confusion.

Laws like these are applicable from midnight on same date.

For people in doubt, excise duty is only levied when product leaves factory, never before, never after.

[Maverick79]

Originally Posted by patil

I am still of the opinion that the excise duty on the SUVs and Large Cars is very high at 24% when the small cars attract an excise duty of only 8%. Ok I can understand the fact that there should be encouragement for small and efficient cars in India but bigger cars attracting excise duty to the tune of 3 times than that of small cars seems illogical and deliberate.

Let's do a simple math!

Consider avg F.E of any small car as 18 kmpl with petrol.
Consider avg F.E of an avg SUV as 8 kmpl on diesel.
Now compare the amount of pollution they make.
The double impact of using a more polluting fuel( diesel) along with lesser F.E in SUVs is the major factor asking for this 3X duty. One more effort to save the environment by discouraging these highly polluting vehicles on roads.

Hope you heard about Singapore's tax structure.
We are far better I guess.

P.S: Not to offence / hurt any body. For that matter I drive a diesel car too.

Regards,
Maverick79

[patil]

Originally Posted by Maverick79

Consider avg F.E of any small car as 18 kmpl with petrol.
Consider avg F.E of an avg SUV as 8 kmpl on diesel.
Now compare the amount of pollution they make.
The double impact of using a more polluting fuel( diesel) along with lesser F.E in SUVs is the major factor asking for this 3X duty. One more effort to save the environment by discouraging these highly polluting vehicles on roads.

Well I am the happiest person if the tax structure was based on fuel efficiency and pollution levels. But its not the case. The Duster and Terrano deliver roughly 18-20 kmpl fuel efficiency. But still they fall in the category of SUVs and attract excise duty @ 24% as of now and 30% earlier. Let the government provide us with smooth and safe roads and nobody will want to buy a fuel guzzling SUVs which are not as fun to drive as the sedans or hatchbacks. Most of us buy SUVs to cope up with bad potholed roads or no roads as in my case in rural areas and due to safety concerns. So the classification of the vehicles itself is wrong.

[Maverick79]

Originally Posted by patil

Well I am the happiest person if the tax structure was based on fuel efficiency and pollution levels. But its not the case. The Duster and Terrano deliver roughly 18-20 kmpl fuel efficiency. But still they fall in the category of SUVs and attract excise duty @ 24% as of now and 30% earlier. Let the government provide us with smooth and safe roads and nobody will want to buy a fuel guzzling SUVs which are not as fun to drive as the sedans or hatchbacks. Most of us buy SUVs to cope up with bad potholed roads or no roads as in my case in rural areas and due to safety concerns. So the classification of the vehicles itself is wrong.

Completely agree on our goverments in-ability for not providing good/ drivable roads across the country.

On the contrary, Duster and Terrano are exceptions. So is Ecosport. They are Psuedo SUV's or another kind of 'Cross' to get the best of both these segments Viz. Cars and SUVs, as everybody here knows.

Most of the other SUV's/ MUV's fall under the low F.E category only(Around 10kmpl irrespective of their pricing).
Sedan based MUV's like Ertiga/ Enjoy are again a different league though.

[vsrivatsa]

Originally Posted by Maverick79

Completely agree on our goverments in-ability for not providing good/ drivable roads across the country.

On the contrary, Duster and Terrano are exceptions. So is Ecosport. They are Psuedo SUV's or another kind of 'Cross' to get the best of both these segments Viz. Cars and SUVs, as everybody here knows.

Most of the other SUV's/ MUV's fall under the low F.E category only(Around 10kmpl irrespective of their pricing).
Sedan based MUV's like Ertiga/ Enjoy are again a different league though.

I guess it would be a good idea to impose tax based on ARAI Mileage figures For any diesel vehicle providing less than say 12kmpl (12 is just an example) mileage should be taxed higher. And as a note, I own the Honda City i-DTEC

[Hiteshs77]

Differential taxes and Duties by nature incentivize the sellers/ buyers to innovate and circumvent the rules. Case in point: Sedans of less than 4m- What an artificial and useless creation.
The only acceptable way is to have a flat structure. The more expensive the vehicle, the higher the duty and so on as the base price increases. Electric vehicles could potentially get an exemption.
And for the tirade against the SUVs/ Luxury cars, please also appreciate that an average SUV/ Luxury car purchaser ends up giving 50%+ of the price as taxes, which is anyway inordinate.

[Equus]

100% election stunt - more than welcome though!!

All the prices would be revised right away - else folks will defer their buying decisions What remains to be seen, is the extent to which they will pass on to the consumers. Given the current state of the auto sales, its prudent they pass on the entire benefits.

Does Ecosport also currently attract 30% tax? Since its sub-4m, it should be 12%.

[rajeev k]

This change in Excise Duty is valid till June 30, 2014 as per some regional TV channels and there is news that Tata Motors have already already announced the reduction.
For small cars, the reduction would be around the same amount manufacturers passed on to customers as benefit for compact saloons vis-à-vis regular saloons. This was around Rs 40K then.

[volkman10]

Audi, Mercedes lower prices up to Rs 3.82 lakh on excise cut.

Audi cut the price of its premium sports utility vehicle (SUV) Q7 by Rs 3.82 lakh to Rs 78.28 lakh from the earlier price of Rs 82.11 lakh.
The base version of Q7 will retail at Rs 58.34 lakh, a cut of Rs 2.84 lakh. The price of SUV Q5 was lowered by Rs 2.22 lakh to Rs 45.72 lakh.
The German firm cut the price of the base version of its A4 sedan by Rs 72,000 to Rs 29.85 lakh. The higher variant will be cheaper by Rs 90,000 at Rs 37.04 lakh.

Rival Mercedes-Benz cut the price of its SUV GL-Class by Rs 2 lakh to Rs 72 lakh. The C-Class (C 220 Ava grand edition) would come down to Rs 39.35 lakh from Rs 39.9 lakh.
The cost of the E-Class (E 250 CDI) would be cut toRs 46.90 lakh from Rs 47.66 lakh (all prices ex-showroom Delhi).

http://economictimes.indiatimes.com/...w/30574839.cms

[deetjohn]

Some good news for car buyers after a series of hikes in the past few years.

Excise duty reduction is good as it has a domino effect on loan amount, road tax, insurance etc.

And it is across the board right? Not just small cars. I guess we will need to change the heading on this thread.