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The budget might bring us some cheer if the 8% duty is cut across the board..
The trick is to compensate the duty cut. Increase the prices and after the budget prices drop. So all in prices remains almost same.
Really sad that these companies are not trying to pass on the duty cuts to the consumers..they are making sure that it is them who will benefit by those cuts.. :Frustrati
This was expected. All major auto manufacturers had announced of price hikes in 2007 - sometime in Oct 06. In fact one of the selling point of Honda salesmen here in Bangalore was the impending price hike.
I doubt the duty reduction would affect mid-segment & above cars.
With input cost's rising so much if tata's are able to stick to the one lakh tag[Even if it is an introductory offer] and produce a decent vehicle then it would be one hell of an achievement.
not sure if they are going to increase Swift Xi/Di prices too.
After effects of budget 2007,
Maruti Udyog Ltd, India's largest car maker, said it will
hike car prices from March 15.I feel the government is trying to suppress the demand of auto sector as already the interest rates are rising," Jagdish Khattar, managing director, Maruti Udyog Limited,
Ford and Hyundai likely to follow suit
source:
Maruti to hike car prices
@ALL... Why do cars that are made almost completely in india with localization levels close to 80-90% cost comparatively more? What are all the taxes on cars that are made in india?
I am not sure if they are going to raise prices for all models by various companies..
As the budget has not given any major concession to the auto industry, the cost of cars going to be increased to cover the additional educational cess proposed in the budget. In fact the shares of Auto companies fell around 5 to 6% after the budget annoucement.
Already Maruti has announced the price hike form 15th March and I am sure others will follow to increase the price.
>> What are all the taxes on cars that are made in india?
The sales tax. Excise duty is another. And, of course, there's registration over and above the ex-showroom price. Am not sure of the exact numbers, but it's said that when you buy a brand new car, over 30% of what you pay, goes to the government.
Now, coming to budget 2007, car makers should have announced price cuts today. Mainly because of duty cut on crude oil, which means lower petrol/diesel costs, which means lower transport (freight) cost for the car makers. Also... tax breaks on R&D will mean that we should see more and more new/better models by the car makers. And... higher farm credit outlay means more demand for tractors and two wheelers, which should cheer the auto companies like M&M, Bajaj and Hero.
The reaction on stock market can be party due to global factors. Almost all world markets have fallen considerably over past 3-4 days.
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