What will be the impact of Budget on Indian Car Scene

prabuddhadg · 29th February 2008, 15:38

Quote:

Originally Posted by LLL

There is no such declaration from FM in budget speech. NTDV panelists did a quick calculation to show that FM cannot provide 60k. he will have banks eat a good share of this amount.

With so many public sector banks now listed, I doubt that shareholders would let their banks take such a hit.

StarScream · 29th February 2008, 15:45

Perhaps the excise duty cut on hybrid cars will convince Honda to bring in the Civic H as a knocked down vehicle rather than as a CBU. That way import tax will come down and it will get the benefit of lower factory gate taxes.
But I dont expect Honda to do that. Its complicated and we Indians have shown a willingness to buy Honda's at any price!

snaronikar · 29th February 2008, 15:47

Quote:

Originally Posted by binoyb22

Can anyone tell me when this Excise duty is going to be effective?
Is it March1st 2008 or April 1st 2008?

how much will be the price reduction of small cars worth 5 to 6 lacs??

Pls read the earlier posts.

Anyways, the ED cut will be from 1st Mar 08. The reduction in small cars will range between 5K to 15K depending on the model.

kvish · 29th February 2008, 16:16

Why do we have more excise duty for hybrid cars than for normal cars? It should have been something like an 8% or 10%. That would have raised some eyebrows in the Auto industry to actually get more and more Hybrid cars.

Anyways, FM has pleased the car buyers, cheaper cars and more money to spend on ICE too

thanks to the new IT slabs!

prabuddhadg · 29th February 2008, 16:27

Another point I just realised about the Rs 60000 cr write off is that most of these loans would be NPA's already, which means little impact of a write off on the bottom line.

Ram_NP · 29th February 2008, 17:32

With Hyundai and GM already annoucing price cut upto INR 15,000, hope other manufacturers will follow the suit.

Tyre manufacturers are also provided with some relief in duties.

Overall seems to be good budget for samll car buyers.

StarScream · 29th February 2008, 18:07

here is how much Hyundai has slashed prices:

Model Price reduction range
Santro Rs 8,730 – Rs 13,278
i10 Rs11,047 – Rs 16,324
Getz Prime Rs 13,169 – Rs 19,419

StarScream · 29th February 2008, 18:11

Tata says it will reduce prices on its small cars and buses in the next few days after studying the budget.

w 12 · 29th February 2008, 18:23

The total NPAs ( non performing assets ) in Indian banks , which are nothing but bad and defaulted loans taken by the Industrialists will be many times more than what is being waived off for Farmers.

It is not just the Farmers, Even Large Industries demand and get subsidies from Government ( subsidised land, electricity, tax holiday, tax waiver etc..)

Even the LPG cylinder we all use at home has a subsidy of approx 200 rs per cylinder.

Waiving off the loans for small farmers is a good move IMO. ( ofcourse the targetted implementation remains a question mark as of now )

v10 · 29th February 2008, 19:31

hey guys, finally does anybody have any information about custom duty cuts on cars???

saurabhb2000 · 29th February 2008, 19:44

Quote:

Originally Posted by v10

hey guys, finally does anybody have any information about custom duty cuts on cars???

Here's the exact verbage from the budget.

[FONT=TimesNewRomanPSMT]

"87.3 Excise duty on small cars [ motor vehicles of length not exceeding 4000 mm and
engine capacity not exceeding 1200 cc (Petrol, LPG and CNG) / 1500 cc (Diesel) and
falling under heading 8702 or 8703] is being reduced from 16% to 12%. (Sr. No.42 of
notification No.6/2006 as substituted vide notification No. 6/2008- C.E refers)."

[/FONT]

undead · 29th February 2008, 20:19

Anybody got an idea of how much tata indigo CS who be priced after this ??? the only sedan to get benefited out of this budjet .

v10 · 29th February 2008, 20:41

no Import Duty Cuts????

rubin2006 · 1st March 2008, 00:40

Quote:

Originally Posted by v10

no Import Duty Cuts????

Leave alone import duty ( As it is not a form of duty but day Light robbery ) He has not cut duty of other cars to 16 % Today premium hatches which are more expensive than these so called Big cars like accents and Logans are paying 16 % duty
Here it takes 10 years for simple things to be done and there is no denying about it They have to rationalise duties but they will take ages

undead · 1st March 2008, 07:01

Excise duty of Electric cars are reduced from 8% to NIL .thats good news for reva . Good to see government is trying to support the green vehicles.

29th February 2008, 15:45	#62
StarScream Senior - BHPian Join Date: Nov 2007 Location: Noida/Delhi Posts: 1,263 Thanked: 665 Times	Perhaps the excise duty cut on hybrid cars will convince Honda to bring in the Civic H as a knocked down vehicle rather than as a CBU. That way import tax will come down and it will get the benefit of lower factory gate taxes. But I dont expect Honda to do that. Its complicated and we Indians have shown a willingness to buy Honda's at any price!
	() Thanks

29th February 2008, 16:16	#64
kvish BHPian Join Date: Jan 2006 Location: Bangalore Posts: 627 Thanked: 195 Times	Why do we have more excise duty for hybrid cars than for normal cars? It should have been something like an 8% or 10%. That would have raised some eyebrows in the Auto industry to actually get more and more Hybrid cars. Anyways, FM has pleased the car buyers, cheaper cars and more money to spend on ICE too thanks to the new IT slabs!
	() Thanks

29th February 2008, 16:27	#65
prabuddhadg BHPian Join Date: Jan 2006 Location: Mumbai Posts: 812 Thanked: 81 Times View My Garage	Another point I just realised about the Rs 60000 cr write off is that most of these loans would be NPA's already, which means little impact of a write off on the bottom line.
	() Thanks

29th February 2008, 17:32	#66
Ram_NP BHPian Join Date: Feb 2007 Location: Kolkata Posts: 354 Thanked: 23 Times	With Hyundai and GM already annoucing price cut upto INR 15,000, hope other manufacturers will follow the suit. Tyre manufacturers are also provided with some relief in duties. Overall seems to be good budget for samll car buyers.
	() Thanks

29th February 2008, 18:07	#67
StarScream Senior - BHPian Join Date: Nov 2007 Location: Noida/Delhi Posts: 1,263 Thanked: 665 Times	Hyundai price cut here is how much Hyundai has slashed prices: Model Price reduction range Santro Rs 8,730 – Rs 13,278 i10 Rs11,047 – Rs 16,324 Getz Prime Rs 13,169 – Rs 19,419
	() Thanks

29th February 2008, 18:11	#68
StarScream Senior - BHPian Join Date: Nov 2007 Location: Noida/Delhi Posts: 1,263 Thanked: 665 Times	Tata says it will reduce prices on its small cars and buses in the next few days after studying the budget.
	() Thanks

29th February 2008, 18:23	#69
w 12 BHPian Join Date: Apr 2006 Location: bangalore Posts: 402 Thanked: 26 Times	The total NPAs ( non performing assets ) in Indian banks , which are nothing but bad and defaulted loans taken by the Industrialists will be many times more than what is being waived off for Farmers. It is not just the Farmers, Even Large Industries demand and get subsidies from Government ( subsidised land, electricity, tax holiday, tax waiver etc..) Even the LPG cylinder we all use at home has a subsidy of approx 200 rs per cylinder. Waiving off the loans for small farmers is a good move IMO. ( ofcourse the targetted implementation remains a question mark as of now )
	() Thanks

29th February 2008, 19:31	#70
v10 BHPian Join Date: Jun 2007 Location: New Delhi Posts: 793 Thanked: 45 Times	hey guys, finally does anybody have any information about custom duty cuts on cars???
	() Thanks

29th February 2008, 20:19	#72
undead Senior - BHPian Join Date: Jan 2008 Location: Bhavani - Komarapalayam Posts: 1,193 Thanked: 179 Times	Anybody got an idea of how much tata indigo CS who be priced after this ??? the only sedan to get benefited out of this budjet .
	() Thanks

29th February 2008, 20:41	#73
v10 BHPian Join Date: Jun 2007 Location: New Delhi Posts: 793 Thanked: 45 Times	no Import Duty Cuts????
	() Thanks

1st March 2008, 07:01	#75
undead Senior - BHPian Join Date: Jan 2008 Location: Bhavani - Komarapalayam Posts: 1,193 Thanked: 179 Times	Excise duty of Electric cars are reduced from 8% to NIL .thats good news for reva . Good to see government is trying to support the green vehicles.
	() Thanks