Excise duty reduction in budget?

Neeraj Dabake · 27th February 2008, 12:12

Any possibility of excise duty reduction on small cars in the budget on friday? Also - would companies likely reduce current discounts, if there is indeed a cut, so that the final price remains more or less same ?

vasudeva · 27th February 2008, 12:22

As to reduction, no one can predict with accuracy. Anyway, there is a 50% probability of being right. There was a huge expectation last year, but nothing happened. My personal opinion on this is not relevant.

Second, if excise is cut, then you can bet on some reduction in discounts. If not, then discounts should increase in March, with perhaps a fire sale around the end of March. Both ways, prices should be lower at end-March than in early-March.

ram_hyundai · 27th February 2008, 12:48

My info is no excise duty exemption for small cars,rather some encouragement would be there for the sedan class of vehicles.My advice is wait and watch.
ram

Neeraj Dabake · 27th February 2008, 16:53

So, is it better to book now (in Feb before budget), or wait till March? Dealers have been scaring me saying that since march is peak season, whatever discounts are currently available will also be withdrawn, and so it will be expensive to buy in March, if there is no cut in budget. And any scope for better (lower) prices towards March-end compared to Feb-end : i can wait till march end for the purchase.

Neeraj

tsk1979 · 27th February 2008, 17:17

According to the rumor mill, this is supposed to be a "Green budget', which means
1. Benefits for "green vehicles"
2. Lesser taxes on small cars
3. Increased taxes on MUV/SUV etc.,
4. Some sops for ethanol/biodiesel ready vehicles.

LLL · 27th February 2008, 17:42

i do not have a high opinion and hence any high hopes of any benefits. They want to make india a hub for small cars ONLY...

i cannot understand why india cannot ALSO be a hub for big cars, SUVs, Buses, Trucks, Trains, Aeroplanes?? Basically anything that can move.

Regarding "green budget"..petrol is greener than diesel. but they raise price of diesel by rs 1 and raise price of petrol by rs 2...encouraging more diesel vehicles. Also no effort to encourage hybrid cars like prius etc.

Classic case of short sightedness...and hence my low opinion about people at helm.

tsk1979 · 27th February 2008, 17:56

From a carbon credit point of view Diesel is greener.
Its possible to make diesel cars as clean as petrol cars with the right technology, and with higher FE you let out fewer greenhouse gases

blue_pulsar · 27th February 2008, 18:01

Quote:

Originally Posted by LLL

but they raise price of diesel by rs 1 and raise price of petrol by rs 2...

No my friend, as far as I know, diesel has more subsidy than petrol. This is attributing to the fact that trucks need diesel for transportation of our day-to-day needs. If diesel would have been as costly as petrol, then inflation would have gone through the roof. Its only that diesel cars are taking advantage of this fact!

LLL · 27th February 2008, 18:06

Quote:

Originally Posted by tsk1979

From a carbon credit point of view Diesel is greener.
Its possible to make diesel cars as clean as petrol cars with the right technology, and with higher FE you let out fewer greenhouse gases

Possibly true...but cleaner diesel will get mixed with kerosene....

LLL · 27th February 2008, 18:09

Quote:

Originally Posted by blue_pulsar

No my friend, as far as I know, diesel has more subsidy than petrol. This is attributing to the fact that trucks need diesel for transportation of our day-to-day needs. If diesel would have been as costly as petrol, then inflation would have gone through the roof. Its only that diesel cars are taking advantage of this fact!

Yes, you are correct that subsidy on diesel is more. Not only trucks, but lot of manufacturing & farm equipment also uses diesel as fuel.

SilentEngine · 27th February 2008, 19:51

Quote:

Originally Posted by LLL

i do not have a high opinion and hence any high hopes of any benefits. They want to make india a hub for small cars ONLY...

i cannot understand why india cannot ALSO be a hub for big cars, SUVs, Buses, Trucks, Trains, Aeroplanes?? Basically anything that can move.

Regarding "green budget"..petrol is greener than diesel. but they raise price of diesel by rs 1 and raise price of petrol by rs 2...encouraging more diesel vehicles. Also no effort to encourage hybrid cars like prius etc.

Classic case of short sightedness...and hence my low opinion about people at helm.

If you see the trend in Europe Diesel cars are gaining popularity. 1.Diesel engines emit less green house gases than Petrol engines 2.Diesel is more efficient than Petrol 3.Only downside with current diesel engine is particulates. But it is possible to reduce it using better technology. Also it makes sense to provide incentives to small cars.

SilentEngine · 27th February 2008, 19:56

Quote:

Originally Posted by LLL

Possibly true...but cleaner diesel will get mixed with kerosene....

Thats a problem with regulation.

undead · 27th February 2008, 20:09

IMO , there is not going to be much of a change ,as the elections are getting near . Mr.Chidambaram may slightly alter the IT Tax bracket or reduce the rates. Can expect changes in agricultural sectors . But who knows what he has in mind .. Wait for the judgement day.

kkdelhi · 27th February 2008, 20:15

Quote:

Originally Posted by Neeraj Dabake

So, is it better to book now (in Feb before budget), or wait till March? Dealers have been scaring me saying that since march is peak season, whatever discounts are currently available will also be withdrawn,...

In my opinion, it is better to book now. If price cuts do happen, take the delivery in March, else you take the benefit of discounts currently being offered. Either way, the customer wins. Isn't that the way it works?

vasudeva · 27th February 2008, 20:55

Do not worry, with or without excise cuts, cars will be cheaper in March. Do not go by what dealers say. They always have a lean February, and will tell you anything to close the deal now. They do not know if you will come back again.

March is peak season for sales, but the discounts are also high because of financial closing. Traditionally, the worst period for buyers (looking for big discounts) is around the festive season. March, April, Dec, Feb, Sep are usually considered good buyer months, unless a festival falls (eg. Navratra/Diwali in mid Oct).

27th February 2008, 12:12	#1
Neeraj Dabake BHPian Join Date: Jan 2008 Location: Mumbai Posts: 32 Thanked: Once	Excise duty reduction in budget? Any possibility of excise duty reduction on small cars in the budget on friday? Also - would companies likely reduce current discounts, if there is indeed a cut, so that the final price remains more or less same ?
	() Thanks

27th February 2008, 12:22	#2
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	As to reduction, no one can predict with accuracy. Anyway, there is a 50% probability of being right. There was a huge expectation last year, but nothing happened. My personal opinion on this is not relevant. Second, if excise is cut, then you can bet on some reduction in discounts. If not, then discounts should increase in March, with perhaps a fire sale around the end of March. Both ways, prices should be lower at end-March than in early-March.
	() Thanks

27th February 2008, 12:48	#3
ram_hyundai Senior - BHPian Join Date: Jun 2006 Location: Calicut ,trisur Posts: 2,020 Thanked: 53 Times View My Garage	My info is no excise duty exemption for small cars,rather some encouragement would be there for the sedan class of vehicles.My advice is wait and watch. ram
	() Thanks

27th February 2008, 16:53	#4
Neeraj Dabake BHPian Join Date: Jan 2008 Location: Mumbai Posts: 32 Thanked: Once	So, is it better to book now (in Feb before budget), or wait till March? Dealers have been scaring me saying that since march is peak season, whatever discounts are currently available will also be withdrawn, and so it will be expensive to buy in March, if there is no cut in budget. And any scope for better (lower) prices towards March-end compared to Feb-end : i can wait till march end for the purchase. Neeraj
	() Thanks

27th February 2008, 17:17	#5
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,717 Thanked: 22,825 Times View My Garage	According to the rumor mill, this is supposed to be a "Green budget', which means 1. Benefits for "green vehicles" 2. Lesser taxes on small cars 3. Increased taxes on MUV/SUV etc., 4. Some sops for ethanol/biodiesel ready vehicles.
	() Thanks

27th February 2008, 17:42	#6
LLL BHPian Join Date: Mar 2005 Location: Delhi Posts: 635 Thanked: 2 Times	i do not have a high opinion and hence any high hopes of any benefits. They want to make india a hub for small cars ONLY... i cannot understand why india cannot ALSO be a hub for big cars, SUVs, Buses, Trucks, Trains, Aeroplanes?? Basically anything that can move. Regarding "green budget"..petrol is greener than diesel. but they raise price of diesel by rs 1 and raise price of petrol by rs 2...encouraging more diesel vehicles. Also no effort to encourage hybrid cars like prius etc. Classic case of short sightedness...and hence my low opinion about people at helm.
	() Thanks

27th February 2008, 17:56	#7
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,717 Thanked: 22,825 Times View My Garage	From a carbon credit point of view Diesel is greener. Its possible to make diesel cars as clean as petrol cars with the right technology, and with higher FE you let out fewer greenhouse gases
	() Thanks

27th February 2008, 20:09	#13
undead Senior - BHPian Join Date: Jan 2008 Location: Bhavani - Komarapalayam Posts: 1,193 Thanked: 179 Times	IMO , there is not going to be much of a change ,as the elections are getting near . Mr.Chidambaram may slightly alter the IT Tax bracket or reduce the rates. Can expect changes in agricultural sectors . But who knows what he has in mind .. Wait for the judgement day.
	() Thanks

27th February 2008, 20:55	#15
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	Do not worry, with or without excise cuts, cars will be cheaper in March. Do not go by what dealers say. They always have a lean February, and will tell you anything to close the deal now. They do not know if you will come back again. March is peak season for sales, but the discounts are also high because of financial closing. Traditionally, the worst period for buyers (looking for big discounts) is around the festive season. March, April, Dec, Feb, Sep are usually considered good buyer months, unless a festival falls (eg. Navratra/Diwali in mid Oct).
	() Thanks