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As of current Indian laws there is no direct or inverse co relation between BHP and Car prices. To give you an example a 124 BHP Eco Sport comes under a lower Excise bracket than a 117 BHP Honda City.

Higher tax slab is applicable if the Size of the Vehicle exceeds 4 Metres in length and Engine Cubic Capacity exceeds 1200 CC for Petrol Engine and 1500 cc for Diesels.

I think it's more to do with higher fuel efficiency that can be achieved with lower power

And needless to say - Indians are obsessed with fuel economy and not because they are eco friendly but purely because they are pocket friendly (or as it seems)

The BHP and vehicle price have no correlation in the Indian market. It's all tuned lower to enhance the Kitna deti hai ? India has been obsessed with mileage and it has shown with lower BHPs and skinny tyres. How else can you explain a Swift or even a Punto with 165 section tyres ? The new Baleno with a 74 bhp tune ?
For a change the Breeza has 215 section tyres and have been unable to come to terms with this size . Have a feeling 205 is more than sufficient for the baby Vitara.

Goa too has imposed a higher VAT on luxury car, SUVs and high-cost motorcycles.

SOURCE: http://auto.economictimes.indiatimes...-cars/51427960

If I have to give a one word answer, my answer is - Yes. For any particular segment, you need to be within a certain BHP range otherwise your car won't sell. For example in the C segment you can sell a 60 bhp car or in the D segment you can't sell a 85 Bhp car.

At the same time if you give the market too powerful a car for the segment which will have a negative impact on the FE and can hurt your chances. I would say rather than BHP having an infuence on the price, it is the price of the car that infuences its BHP. :)

Typically for Indian conditions we don't need cars with very high BHP rating as our road conditions and traffic conditions really don't need powerful cars compared to say the USA where roads are wide and distances are long and cars spend a lot of time on freeways.

Today Karnataka Govt. presented 2016 budget.

News items are saying "All electric vehicles are fully exempt from taxes."

Wonder which taxes are exempted - Sales tax? stamp duty? road tax? or is it ALL TAXES? And do they consider SVHS as 'electric vehicle'?

Surely this will bring down cost of E2O by a good percentage!

Buyers to shell out 1 % tax extra on vehicles over Rs 10 lakh.

http://auto.economictimes.indiatimes...-lakh/52139748

Wasn't this extra tax supposed to be from 1st June 2016. If it is right now then government has become too greedy

Scrapping of Old Car in news again -

http://epaperbeta.timesofindia.com/A...05072016008028

My Car is 13 years Old and in Excellent Condition compared to most of the Cabs. This is ridiculous if implemented

Regards

The policies are made taking into account the impact of majority of such vehicles. This is to contain pollution caused by vehicles whose owners never even get a PUC done. We must admit that there are lots of people who will never get it done also. Thus, the only way to control it is by taking some drastic decisions. It is a good thing that pollution caused by commercial vehicles have been taken into account. I for one, would not mind scrapping my car when the time comes for the greater interest of the country and its people.

“Analysis of age of vehicles and the pollution caused by them showed that vehicles which were typically more than 10 year old were 15% of the total number of vehicles on the road but each of them polluted 10-12 times more than a BS-IV compliant car. This is specially so for medium and heavy commercial vehicles (trucks and buses), which are just 2.5% of the total fleet of vehicles on the road but contribute about 60% of the pollution.“

I am not against scrapping of old cars, but its a knee jerk reaction in this situation where everyone from common man to Supreme Court is singing the Pollution song to justify banning irrationally.

Its a collective failure of the Successive GOI and should not affect the common by banning old cars where penetration of Cars is very low. Remember some middle/lower middle class family still buy old cars which are 8-10 years old as their first car.

Govt is giving data of Medium and Heavy vehicle, has anyone questioned how these vehicle (barely road worthy) get fitness certificate year after year. It looks like the Motor Industry lobby is in full swing here along with GOI to scrap the old cars.

GOI is harping on these new rules since SC has taken a view of Pollution and GOI/Motor Industry wants to cash in on that.

I don't see any substantial data, analysis, research, future plan and impact to justify these rules.

Regards

I agree on some aspects like the Motor Industry lobby being very active and it being a knee jerk reaction. But we have to start somewhere. This and now is as good a place to start as any. Much better than setting up some committee which takes 10 years to create a report and again followed by another 10 years of debate. What do we have to lose? A car? Some money? How about health? You can buy a car again and fall in love with it again otherwise no one would buy a new car. Money can always be earned. Health is not quite as easy.

Middle/lower middle class families rarely buy old cars which are 8-10 years old as their first car. They prefer to buy Altos and other such A segment cars. It being a new car is a very important thing for a middle class family. This is also backed by the sales numbers.

With respect to Medium and Heavy vehicles, we all know how they get the fitness certificates. Bribes. But the central govt or at times even the state govt is unable to do anything because of the existing structures and archaic laws like the Motor Vehicles Act which empowers the RTO. The current Central govt has been trying implement changes to this existing structure but has failed till date. With a huge push being given to development of infrastructure and logistics, there will be an increase in the commercial vehicle numbers. Therefore, I believe, a stop gap solution is required until the mess is sorted out.