Originally Posted by [b

Quote[/b] ]
Eyeing that Jag? It can be yours for Rs 20 lakh plus
NANDINI SEN GUPTA

TIMES NEWS NETWORK[ SATURDAY, JANUARY 31, 2004 03:59:33 AM ]
NEW DELHI: If the word homologation makes you wonder what sort of an animal-on-four-wheels it is, here’s something *that will gladden your heart. The new homologation laws, coupled with the existing EPCG (Export Promotion Credit Gurantee) duties, will make some of the most coveted wheels on earth relatively affordable for Indian pockets. Under the EPCG scheme, car imports attract a 5% duty. With the exit of SAD earlier this month, the only other duty slab for this segment is the 16% CVD (countervailing duty).


So far, the biggest import barrier for this segment was the homologation cost of Rs 2-3 lakh to Rs 30-odd lakh, depending on the make under validation. Under the new homologation rules, all cars above $40,000 or Rs 18 lakh CIF value will no longer need homologation. Which means, under the EPCG scheme, a $40,000 vehicle can come into India for a tag as low as Rs 20 lakh, which is lower than the cheapest model in the Mercedes Benz stable, the C-class.

If you hold an EPCG licence *and are eyeing the latest Jaguar — the S-type V6, which was launched in Detroit earlier this month — the tag you are looking at is a minimum $42,000. At 5% import duty and 16% CVD, the final tag is a little over Rs 23 lakh. This is cheaper than the Rs 25.86 lakh that DaimlerChrysler’s just-launched diesel C-class upgrade, the 220 cdi, costs. Depending upon the trim levels, the Jag tag could go up to $62,000.

Ditto for the largest Sedan in the Volkswagen group company Audi’s stable. The A8, which sports a $62,000-$68,000 tag, depending on the variant you choose, can now be imported into India at just over Rs 34 lakh. That’s cheaper than the Mercedes Benz E-class (both diesel and automatic), which costs Rs 35.97 lakh and Rs 35.01 lakh respectively. And it’s almost neck-and-neck with the Pajero 3.2 DI diesel, which costs Rs 33.8 lakh. Prices are ex-showroom Delhi.

If it’s a BMW 7-series you are interested in, the tag will be pricier than most models available in India. The ‘04 7-series costs between $69,995-$119,195. This means at current duty levels, the minimum price of the 7-series will be Rs 38.5 lakh.

The no-homologation ruling will also help EPCG holders to import existing CBU models at lower prices. The S-class, which costs Rs 57.79 lakh for its 350L model in India, can be imported under the EPCG route at a minimum of Rs 40 lakh. The tag will go up according to trim levels. Similarly, the Hyundai Terracan, which is selling at Rs 18.5 lakh, can be imported for Rs 12 lakh only, giving the just launched Ford Endeavour a run for both its money and share of the diesel SUV market.

Originally Posted by [b

Quote[/b] ]also guys see u hve to own the audi a8 firstso thats like what $70-1,00,000 and then end up paying the duty also for it whaich is another rs, 30- 40 lac. so addd it up and imagine what a RIP OFF

Originally Posted by [b

Quote[/b] ]i mean homologation nt import duty??\\

Originally Posted by [b

Quote[/b] (GTO @ April 17 2004,17:41)]Precisely why the custom duties exist. The Government wants you to support local industries by buying an S-Class from DC India, instead of exporting labor by picking up an A8 and importing it.