Team-BHP - Budget 2016 & Indian Cars: All you need to know

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Am in the market for the A4 or the 320D (most likely the 320 ! ;-) and both have said if i book in 1 or 2 days time they will bill me on then older rate. As such have given a booking check to the beemer guys

BMW , AUDI as well Mercedes have trading companies in India which are different then their manufacturing plants. They must have invoiced everything ready at factory to these. Expect old price cars for a while besides I am not very sure how much are they actually going to increase. Don't miss on Discounts even it means taking little risk. I don't think dealers can sell inventories so quickly and do factor interest they have to bear for the stocks they wish to carry . I also understand larger incentives of dealers are based on retails then wholesale so they can't sit on inventories.

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Originally Posted by tsk1979 (Post 3923950)

This is a classic case of violating the spirit of the law while adhering to the letter. This is the reason it is considered that tax concessions based on technology are useless, they should be based on results. For example, your hybrid car doing 12kmpl may get tax concession as opposed to your next gen gasoline engine doing 25kmpl.

We have to see how the Indian government regulation defines hybrid. Does the law say that as long as you call the tech hybrid it is hybrid?

How very true.

The problem with law makers is that they see technical stuff in the same lines as they do while interpreting the book of law i.e., drawing a meaning to suit their own conveniences. Result; the ones with crafty intentions will walk away with more sympathy /relaxations than the one who actually deserves it. :Frustrati

Laws relating to technical aspects (be it Enginering or Medical) I suppose, should be devised based on straight line end results rather than complex phenomenon with confused /arbitrary/ unclear outcome.

One query I have is that shouldn't we the customers be paying this new cess/tax? Shouldn't they be applicable on the existing on-road prices. I thought they they would be accounted for separately in the final invoice while purchasing a car, like how road-tax and insurance premium are.
But the manufacturers are raising the ex-showroom prices on account of this.
Wouldn't this lead to a subsequent increase in the road-tax as well as the Insurance premium as well? They're dependent on the ex-showroom price of the car and hence an increase in the ex-showroom price means an increase in the road-tax and insurance as well.
Buying a premium car is turning out to be an extremely expensive affair! :Frustrati

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Originally Posted by greatgyan (Post 3924475)

You are correct. The cess is applicable on the factory price which mean increase in ex-showroom which means increase in on-road prices. So the 4% increase will be more like 5.5-6% on -road :Frustrati

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Originally Posted by volkman10 (Post 3924494)

Maruti Suzuki increases prices of its cars post budget effect.

Smart Hybrid SHVS- Ciaz and Ertiga are not affected.

Source: Maruti Suzuki

Per my dealer Mahindra is going to raise prices by this weekend.

I spoke to my Honda dealer sales person today regarding my booking and he says that there is still no clear picture on the price increase from Honda. I told him if the vehicle is invoiced from factory, it should not have the new 1% tax added but he maintained the standard line that pricing at the time of invoice is applicable.

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Originally Posted by GTO (Post 3923057)

Other Highlights of the 2016 Budget:

The FM said that private players will be permitted to enter the road transport sector. This could mean private companies operating public transport buses, thereby improving the overall competitiveness & efficiency of the sector. Further, the end of 'permit raj' where bus operators have to procure a permit for each route they ply on is welcomed. With the blessings of individual states, private bus operators could freely run on inter & intra state routes.

Is this also done to make it clear that taxi aggregators like Uber and Ola can run their taxi services? So far in many cities, the auto unions were raising issues like these services are illegal and only black yellow auto/taxis are legal. Now with this change, the unions will have no ground to oppose these companies.

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Originally Posted by praveen_v (Post 3924608)

I told him if the vehicle is invoiced from factory, it should not have the new 1% tax added but he maintained the standard line that pricing at the time of invoice is applicable.

You should immediately send a mail to the dealership keeping Honda Cars India customer service in the loop regarding the invoicing issue. Please re-check whether your car is in transit or not. I would recommend visiting the dealership and checking with Head of CRM or Sales and get your query sorted out.
On a lighter note, i was able to take the delivery of my car on Feb 26th, before this complex taxation system kicked in. Hope you pay as per the commitment!

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Originally Posted by praveen_v (Post 3924608)

Pricing at the time of invoicing at dealership is applicable. Most likely you would pay the additional taxes.

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Originally Posted by GTO (Post 3923052)

Please note that the above cess is ONLY applicable on factory dispatches from today. Thus, if your dealer tries to increase the price of a car that's already on his lot or in transit, tell him to take a hike.

Thanks GTO for the information. I inquired about a XUV500 at a Mahindra showroom yesterday, and like any other black marketeer, the sales person told that cars are available in stock but they are in check to take further bookings. Is there a way we can bring this to any government authorities notice? I am not sure if M&M higher authority can take any step.

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I inquired about a XUV500 at a Mahindra showroom yesterday, and like any other black marketeer, the sales person told that cars are available in stock but they are in check to take further bookings

Off all the companies Mahindra guys looks to be the worst amongst others I came across recently , we had booked 3 Balero's and a Thar on 29th , filled forms and processed file for Loan and their marketing guys have since vanished - not that its going to make any difference but just shows the cheap mentality. I am very clear , if we have to pick at higher rates we will buy March manufactured, at least our money is going to Government.

Yes , there should be some way to check such hoarding practice , perhaps manufacturer need to take a lead but they will silently accept this as way of incentives to dealers.