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Old 5th July 2019, 14:38   #16
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Re: Budget 2019 - Auto industry and in general

GST has been reduced to 5% for e-vehicles and income tax deductions of 1.5Lakh on interest on purchase of E- vehicles.

How will this impact me if I want to buy a Hyundai Kona? Can some explain the monetary benefits I can expect on buying a Kona?
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Old 5th July 2019, 14:57   #17
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Re: Budget 2019 - Auto industry and in general

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Originally Posted by Aditya_Bhp View Post
GST has been reduced to 5% for e-vehicles and income tax deductions of 1.5Lakh on interest on purchase of E- vehicles.

How will this impact me if I want to buy a Hyundai Kona? Can some explain the monetary benefits I can expect on buying a Kona?
This is only a request to GST council asking for a revision in rates. GST council will have to take a decision and only then this will be applicable to any purchases.
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Old 5th July 2019, 15:24   #18
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Re: Budget 2019 - Auto industry and in general

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Originally Posted by vinaydas View Post
Michael Corleone pretty much killed the competition which tried to take over his fathers business when he was sick
Agreed, MSIL cannot make coldblooded kids. But creating a dedicated subsidiary just for EV would suffice.

Tesla's certainly in dire straits but they're doing business in a very advanced vehicle market, against very well-established players and climate denying government. Our market has mostly substandard cars and skyrocketing fuel prices.
Things are very interesting here... That's what I'd say.
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Old 5th July 2019, 15:27   #19
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Re: Budget 2019 - Auto industry and in general

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Originally Posted by sandeepmdas View Post
Agreed, MSIL cannot make coldblooded kids. But creating a dedicated subsidiary just for EV would suffice.

Tesla's certainly in dire straits but they're doing business in a very advanced vehicle market, against very well-established players and climate denying government. Our market has mostly substandard cars and skyrocketing fuel prices.
Things are very interesting here... That's what I'd say.
Our Saving grace would be the Wagon R electric with a 200KM range ( thanks to the super light weight body panels made out of Shōji (Japanese paper doors used as room dividers in their houses)
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Old 5th July 2019, 16:59   #20
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Re: Budget 2019 - Auto industry and in general

Typical note from SIAM. Taking unwarranted credit for some things & whining over others. Good for nothing, SIAM is. I'm so glad no one in the Delhi power corridors listens to them:

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Congratulating the Finance Minister on her maiden Budget, Mr. Rajan Wadhera, President, SIAM has said that the automotive industry is happy that the Finance Minister has extended wholehearted support to electric mobility, but this will not help the automotive industry in emerging from the current steep slowdown it is facing today.

We warmly welcome the various additional measures announced to promote EVs like reducing the GST to 5%, exemption in customs duty on EV parts and specially the Income Tax deduction on the interest component paid for loans taken for purchasing EVs. All these were recommendations given by SIAM and we are grateful to the FM for having accepted them. These measures will certainly help in making EVs more affordable and attractive to the consumers, which is in line with the recommendations made in the Economic Survey.

However, the auto industry is currently going through a very difficult time and the industry was expecting some form of a stimulus package in the Budget in line with what had been done by Government during the previous two similar slowdowns. It is disappointing that the FM has not recognized the distress in the auto sector and not come out with any kind of support or stimulus, said Mr. Wadhera. However, the initiatives for improving liquidity in the market by capital infusion in the Banks should help the industry to some extent.

Furthermore, the industry had expected that a voluntary scrappage policy would be announced which did not happen. There was also no announcement of extension of the 200% weighted deduction for R&D expenses.

In fact, increasing the duties on auto parts and putting an additional cess on petrol and diesel could drive up costs of vehicles, specially where volumes are low and localization in not viable and the overall cost of operations of transport which could further aggravate the slowdown in the industry, cautioned Mr. Wadhera.
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Old 5th July 2019, 17:14   #21
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Re: Budget 2019 - Auto industry and in general

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Hopefully if they removed the import duty on EVs completely that would have let the Teslas and their likes roll in.
The problem for the Indian Govt. is not Tesla rolling in. It's the cheaper Chinese alternatives that will merrily jump into the next ship to reach Indian shores.

They (Chinese) are already mass producing EVs and present a much better value proposition to any automaker to get the car imported from China to India, rather than "Make in India".

That's why India is being slow to the game in it's reduction of EV taxes, so as to develop EV manufacturing capabilities over here. Yes, it is hurting our environment, but they'd (India) "hold the door" against the possible Chinese imports till the maximum time permissable.
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Old 5th July 2019, 20:32   #22
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Re: Budget 2019 - Auto industry and in general

Is customs duty on imported parts increased in today's budget?

Is any of our favorite gear boxes (DQ200, DQ250, DQ500, ZF8) made in India? I fear all of them are imported, which means all cars worth buying will now become expensive(?)
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Old 5th July 2019, 21:35   #23
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Re: Budget 2019 - Auto industry and in general

They have preferred to be somewhat visionary with the electric mobility, but have not at all addressed the immediate problems that the auto industry is facing, with excessive inventories, shutting down of new car dealerships and dwindling automobile sales in almost all categories. And such a vision for electric mobility is OK, but what about the huge investments automakers were compelled to very recently make for switch over to BS VI by 1.4.2020 and what about the mandatory safety requirements that also involved a lot of investments ?

To add to the auto sales woes, the increase in petrol and diesel prices by levying a cess of Re 1=00 is retrograde and will psychologically act as a further dampener for automobile sales. They forget that the automobile industry is labour intensive and lights the kitchen fires of hundreds of thousands of employees' families in various related jobs. The next bad news coming and most likely will be lay-offs and that's going to hurt.

Last edited by anjan_c2007 : 5th July 2019 at 21:38.
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Old 5th July 2019, 22:17   #24
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Re: Budget 2019 - Auto industry and in general

Luxury cars from Mercedes Benz, BMW, Audi and Volvo could see a marginal hike in prices as the Budget increased the customs duty on a host of components that are currently being imported.


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Old 6th July 2019, 09:18   #25
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Re: Budget 2019 - Auto industry and in general

Unless we get affordable EV’s, these tax sops makes no sense! I wouldn’t plonk my 20 Lacs just to own an EV at the moment.
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Old 6th July 2019, 18:45   #26
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Re: Budget 2019 - Auto industry and in general

Indian EV policy major highlights:
  • GST is 5% vs 29% to 50% for ICEs.
  • Rs 1.5 lakhs ($ 2185) tax deduction on interest paid on loans for purchase of EVs.
  • Rs 10,000 subsidy per kWh ($145) of battery capacity for 2 wheelers, 3 wheelers and cars (but only for fleet cars). Subsidy supports 1 million e-two-wheelers, 500,000 e-three-wheelers, 55,000 four-wheelers and 7,000 buses.
  • Rs 20,000 subsidy per kWh ($290) of battery capacity for electric buses.
  • Rs 1,000 crores ($145 million) for charging infrastructure.
  • Total of Rs 10,000 crores ($1.45 billion) in subsidies for different type EVs mentioned in 3, 4, 5 points.
  • Govt also reduced import duty on battery cells and different components.

Even though our complete EV policy came a bit late, but I believe its one of the best in the world. It encourages early adapters who are investing to develop products (Ather, MG, Mahindra, Tata, etc...) and creating charging infrastructure (Ather and MG). Domestic manufacturing is must over the time for getting subsidies resulting in EV industry development.
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Old 6th July 2019, 19:33   #27
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Re: Budget 2019 - Auto industry and in general

Certain promoter-centric firms like Wipro, TCS too look to be affected by this budget. Minimum public share holding now has been increased from 25-35%, which means quite a few of these shares will come into the market for grabs.

Am guessing the prices will see some corrections in near term. Good time maybe to pick some stocks while it hits a low? What do the stock experts here think?

Last edited by SoumenD : 6th July 2019 at 19:34.
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Old 6th July 2019, 22:09   #28
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Re: Budget 2019 - Auto industry and in general

This is the first time the Government has taken a solid step to stimulate the EV market. All this while it was just cheap talk and I was starting to think its going to be only talk. I'm talking to you, Nitin Gadkari.

Yes, auto industry is going through a bit of down cycle. But its too much to expect handouts the moment you hit a rough patch. Its time the big(ish) auto got their act together and brought EVs to market.

Can't wait for Kona and eZS later in the year.
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Old 7th July 2019, 08:23   #29
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Re: Budget 2019 - Auto industry and in general

My concern here is the EV charging network i.e. the lack thereof. I can't see the govt. pushing enough for it.

So even if the manufactures bring in the good EVs, even at an affordable price, doing an outstation trip is still not possible. And I am not expecting the manufactures to setup charging points across the country.
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Old 7th July 2019, 08:50   #30
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Re: Budget 2019 - Auto industry and in general

I feel it's a premature decision by the government. EV is surely the future, but trying to force the progress IMO is futile. The current range of batteries, the state of recharging infrastructure, time taken per charge makes owning a EV, frankly pointless. A aggregator cab service is far more effective within a city for now. The ideal way to change track would be to encourage hybrids via lower tax, reduced insurance and registration costs and even reduced fuel price for a hybrid etc, and as the technology matured, change tack to push full blown electric vehicles.
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