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

prakasse · 17th February 2014, 12:19

Friends,

Finally some good news to Auto manufacturers & us[customers] from Fiscal budget 2014.

Government has reduced the

Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014.
Excise duty on consumer durables cut from 12 to 10 per cent till 30.6.2014.
Cut excise duty on mid segment cars to 20% from 24%
Duty cut on SUV cars from 30% to 24%

Very welcome move in the current stagnant auto industry. But we should see if the manufacturer pass on these benefits to the end customers.

Thanks,

Prakash.

alabjarus · 17th February 2014, 12:28

Good move indeed.

However, being a Vote On Account Budget, this reduction may not be long term. Next Govt will have to submit a new budget and since its post elections, the new Govt is likely to target incremental revenues from sectors like auto. So in short, this may be a small window and my guess is 2 months at the max.

Mohan Mathew A · 17th February 2014, 12:30

As i understand duty cut on all the 3 categories of passenger vehicles is only till 30/6/2014.

abhinav.gupta88 · 17th February 2014, 12:31

How much would this translate to?

Any gurus who could translate them into some brackets based on Ex-showroom Price ( Rough Estimates)

3-5 lakh
5-8 lakh
8-11 lakh
11-15 lakh
15-20 lakh
20 lakh onwards

This would help some of us plan our purchases accordingly.

Vid6639 · 17th February 2014, 12:35

This is for manufacturers since it's a grim scene in the auto industry. Most probably this may not translate to any reduction in prices. Prices may remain same but the margins of manufacturers will help them.

vinair · 17th February 2014, 12:54

Some good news to people planning for a new car!

http://profit.ndtv.com/news/budget/a...-lateststories

Not sure if this is purely a election stunt or will this be revised after a new Govt is formed!

Aditya · 17th February 2014, 13:09

The Government of India has proposed a cut in the Excise Duty of cars and two-wheelers, which could result in vehicles getting cheaper.

Link to Team-BHP News Article

D'Artagnan · 17th February 2014, 13:15

Post deleted by the Team-BHP Support : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum.

Please read our rules before proceeding any further. We request you to post ONLY when you have something substantial to add to a discussion.

jessie007 · 17th February 2014, 13:16

Reduction in excise duty on:

- small cars, motorcycles and scooters from 12% to 8%
- mid and large segment cars from 24% to 20%,
- Sports Utility Vehicles (SUVs) from 30% to 24%

The cut in duty will be applicable around June 20, 2014, when the new government is likely to present the full year budget.

appu.bhandari · 17th February 2014, 13:27

How soon can we see a price reduction then?
In market for a hatchback and this news sure brightened my day

eq24 · 17th February 2014, 13:33

I called up Ring Road Honda, who have allotted me delivery of the new City sometime next week. These guys are saying they have no clue.
4% of a 10lac car is a lot of money.
Do people on the forum know what is the usual recourse for such savings to be passed on.
When a price rise is in effect the action is immediate, just hoping the same swiftness is employed the other way as well.

car_crazy1400 · 17th February 2014, 13:33

I think the reduction would be applicable from immediate effect.

This will last for around 4 months till a new government is elected & presents a new budget

rowhun · 17th February 2014, 13:34

It all depends on the manufacturers. Whether they pass on the benefit to the consumer. And if they do, how much of it will they pass on.
Keeping in mind that the industry has been a slump, it presents an opportunity to the manufacturers as well to cut their losses a bit.

But all said and done, this is real good news. Obviously its an election move, but nevertheless the cut in excise duty on a range of products is a welcome move.

A lot of the SUVs will make sense again. Finally!

D'Artagnan · 17th February 2014, 13:35

This brings an interesting question to my mind. Say you book a polo gt tsi and get delivery of the car post July, would you get benefits of the price reduction or would sales personnel ask you to cough up the original amount? This is with respect to all automotive companies and not only vw. As it goes generally if there is a price increase, customers have to pay the extra amount and have no price protection. It will be interesting to see if the dealers have some sort of price protection?

What kind of back alley tactics would they resort to if they still want the original amount?

gsurya · 17th February 2014, 13:37

Welcome boost for the automobile industry, looks like Auto Expo 2014 had sensed it too.. given the amazing enthusiasm & buzz there.

17th February 2014, 12:19	#1
prakasse BHPian Join Date: Sep 2006 Location: Blore Posts: 112 Thanked: 48 Times	Budget 2014 - Car prices to come down due to reduction in Excise Duty! Friends, Finally some good news to Auto manufacturers & us[customers] from Fiscal budget 2014. Government has reduced the Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014. Excise duty on consumer durables cut from 12 to 10 per cent till 30.6.2014. Cut excise duty on mid segment cars to 20% from 24% Duty cut on SUV cars from 30% to 24% Very welcome move in the current stagnant auto industry. But we should see if the manufacturer pass on these benefits to the end customers. Thanks, Prakash.
	(6) Thanks

17th February 2014, 12:28	#2
alabjarus BHPian Join Date: Oct 2006 Location: Bangalore Posts: 210 Thanked: 78 Times	Re: Budget 2014 --- Cars price will be reduced Good move indeed. However, being a Vote On Account Budget, this reduction may not be long term. Next Govt will have to submit a new budget and since its post elections, the new Govt is likely to target incremental revenues from sectors like auto. So in short, this may be a small window and my guess is 2 months at the max.
	(2) Thanks

17th February 2014, 12:30	#3
Mohan Mathew A BHPian Join Date: Feb 2013 Location: Kochi Posts: 559 Thanked: 586 Times	Re: Budget 2014 --- Cars price will be reduced As i understand duty cut on all the 3 categories of passenger vehicles is only till 30/6/2014. Last edited by Mohan Mathew A : 17th February 2014 at 12:31.
	(1) Thanks

17th February 2014, 12:31	#4
abhinav.gupta88 Senior - BHPian Join Date: Sep 2007 Location: Delhi , India Posts: 4,092 Thanked: 325 Times View My Garage	Re: Budget 2014 --- Cars price will be reduced How much would this translate to? Any gurus who could translate them into some brackets based on Ex-showroom Price ( Rough Estimates) 3-5 lakh 5-8 lakh 8-11 lakh 11-15 lakh 15-20 lakh 20 lakh onwards This would help some of us plan our purchases accordingly.
	() Thanks

17th February 2014, 12:35	#5
Vid6639 Team-BHP Support Join Date: Jul 2006 Location: Bangalore Posts: 17,728 Thanked: 43,463 Times View My Garage	Re: Budget 2014 --- Cars price will be reduced This is for manufacturers since it's a grim scene in the auto industry. Most probably this may not translate to any reduction in prices. Prices may remain same but the margins of manufacturers will help them.
	(1) Thanks

17th February 2014, 12:54	#6
vinair BHPian Join Date: Nov 2011 Location: Bangalore Posts: 700 Thanked: 1,941 Times	Budget 2014 - Duty on small cars, 2 wheelers reduced! Some good news to people planning for a new car! http://profit.ndtv.com/news/budget/a...-lateststories Not sure if this is purely a election stunt or will this be revised after a new Govt is formed!
	(4) Thanks

17th February 2014, 13:09	#7
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,830 Thanked: 77,031 Times View My Garage	Re: Budget 2014 - Duty on small cars, 2 wheelers reduced! The Government of India has proposed a cut in the Excise Duty of cars and two-wheelers, which could result in vehicles getting cheaper. Link to Team-BHP News Article Last edited by Aditya : 17th February 2014 at 13:43.
	() Thanks

17th February 2014, 13:15	#8
D'Artagnan BHPian Join Date: Aug 2011 Location: Bangalore Posts: 266 Thanked: 129 Times	Budget 2014 - Duty on small cars, 2 wheelers reduced! Post deleted by the Team-BHP Support : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum. Please read our rules before proceeding any further. We request you to post ONLY when you have something substantial to add to a discussion. Last edited by GTO : 18th February 2014 at 13:14.
	() Thanks $Received Infraction$

17th February 2014, 13:16	#9
jessie007 BHPian Join Date: Aug 2006 Location: New Delhi Posts: 790 Thanked: 1,556 Times View My Garage	Re: Budget 2014 - Duty on small cars, 2 wheelers reduced! Reduction in excise duty on: - small cars, motorcycles and scooters from 12% to 8% - mid and large segment cars from 24% to 20%, - Sports Utility Vehicles (SUVs) from 30% to 24% The cut in duty will be applicable around June 20, 2014, when the new government is likely to present the full year budget. Last edited by jessie007 : 17th February 2014 at 13:28.
	() Thanks

17th February 2014, 13:27	#10
appu.bhandari BHPian Join Date: Aug 2013 Location: Bangalore Posts: 71 Thanked: 46 Times	How soon can we see a price reduction then? In market for a hatchback and this news sure brightened my day
	() Thanks

17th February 2014, 13:33	#11
eq24 BHPian Join Date: Aug 2011 Location: Crazy-gaon, NCR Posts: 376 Thanked: 312 Times	I called up Ring Road Honda, who have allotted me delivery of the new City sometime next week. These guys are saying they have no clue. 4% of a 10lac car is a lot of money. Do people on the forum know what is the usual recourse for such savings to be passed on. When a price rise is in effect the action is immediate, just hoping the same swiftness is employed the other way as well.
	(1) Thanks

17th February 2014, 13:33	#12
car_crazy1400 BHPian Join Date: Feb 2005 Location: DL/UP16/PB10 Posts: 647 Thanked: 330 Times	I think the reduction would be applicable from immediate effect. This will last for around 4 months till a new government is elected & presents a new budget
	() Thanks

17th February 2014, 13:34	#13
rowhun BHPian Join Date: Aug 2008 Location: Hyderabad, New Delhi Posts: 121 Thanked: 67 Times	Re: Budget 2014 - Duty on small cars, 2 wheelers reduced! It all depends on the manufacturers. Whether they pass on the benefit to the consumer. And if they do, how much of it will they pass on. Keeping in mind that the industry has been a slump, it presents an opportunity to the manufacturers as well to cut their losses a bit. But all said and done, this is real good news. Obviously its an election move, but nevertheless the cut in excise duty on a range of products is a welcome move. A lot of the SUVs will make sense again. Finally!
	() Thanks

17th February 2014, 13:35	#14
D'Artagnan BHPian Join Date: Aug 2011 Location: Bangalore Posts: 266 Thanked: 129 Times	Re: Budget 2014 - Duty on small cars, 2 wheelers reduced! This brings an interesting question to my mind. Say you book a polo gt tsi and get delivery of the car post July, would you get benefits of the price reduction or would sales personnel ask you to cough up the original amount? This is with respect to all automotive companies and not only vw. As it goes generally if there is a price increase, customers have to pay the extra amount and have no price protection. It will be interesting to see if the dealers have some sort of price protection? What kind of back alley tactics would they resort to if they still want the original amount? Last edited by D'Artagnan : 17th February 2014 at 13:37.
	() Thanks

17th February 2014, 13:37	#15
gsurya BHPian Join Date: Feb 2008 Location: Mumbai Posts: 776 Thanked: 694 Times	Re: Budget 2014 - Duty on small cars, 2 wheelers reduced! Welcome boost for the automobile industry, looks like Auto Expo 2014 had sensed it too.. given the amazing enthusiasm & buzz there.
	() Thanks