4 % reduction in car prices

car_crazy1400 · 7th December 2008, 19:25

Just read this on CNBC on tv that the central government has reduced the CENVAT (excise) on all things (including cars) , besides petroleum products by 4%.

Maruti has already said they will pass on the benefit to the consumers. While M&M has said on their higher models , they will pass on 4% plus some more benefits.

I do hope that all car companies follow suit & car prices get reduced & Discounts (existing ones , like 55k off the Toyota Innova , till morning) are still given.

Mods : Please merge if a smilar thread exists as I wasn't able to find any.

ravibhat · 7th December 2008, 19:30

Thats good move which is expected couple of months back itself. Now every car makers would come with BIG Ads with more benefits including this 4% reduction.

Its good benefit to customers

I expect March-April might be best time to buy cars, however present offers are equally good too.

Regards,

Ravi.

car_crazy1400 · 7th December 2008, 19:55

Now even Honda Motors India says that they will pass on the reduction in CENVAT's benefit to consumers.

This will cause a price reduction for all the vehicles including commercial vehicles & motorcycles.

But if this is enough to boost the fledgling sales of indian automotive sector, remains to be seen.

I think the auto companies will now reduce the discounts (or remove them altogether on some models), that were being offered till now due to the year end & drop in sales.

NOTORIOUS · 7th December 2008, 20:07

Thank you sir for this grat news , just enquired about this from my salesman for swift vdi and he said that it is only in news and will be in effect in a day or two.

he also adds that final price is what applicable on the time of delievery.but just imagine , i am getting my swift for 23k less. it means ABS is free .

OT : i think this topic should be in Indian Car Scene section !!!

bblost · 7th December 2008, 20:11

Maruti cuts prices, others likely to follow

JVille07 · 7th December 2008, 20:24

Today Govt announced a fin. package including tax cuts to boost economy with a 4 % cut in Value Added Tax to help the corporate sector in general.

Will this VAT cut will reduce the car prices ? What do you think?

Mods: Please move this to app. thread if I wrongly uploaded

SilentEngine · 7th December 2008, 21:05

Maruti has already announced price cut effective from midnight. Others may follow

monty9991 · 7th December 2008, 21:20

is it VAT or EXCISE DUTY ? as VAT is applicable only within stat. or othervise it is CST if we buying anything out of our state. correct me if i am wrong.

JVille07 · 7th December 2008, 21:24

Congrats on your century !!

Yes , Maruti announced a 4% price cut eff. midnight as a response to FM's stimulus package..I think other car makers will follow the same

Monty,
They reduced CENVAT by 4 %.
see the link with the details of Auto majors who announce price cuts
Car prices to go down; automakers see demand on fast lane- Automobiles-Auto-News By Industry-News-The Economic Times

As per this for an Alto minimum price cut will be Rs. 8000/-

I think CENVAT and Excise duty are same. Am I right?
Sorry I missed to include this in my previous reply

Note from the Team-BHP Support Staff : Please use the "edit" button if posting within 15 minutes of the first post, instead of creating another back-to-back post

Also use "Multi Quote" option for quoting Multiple posts.

freddie · 7th December 2008, 23:02

It seems that car prices could go down by 4% as part of the package the Government unveiled to boost the fledging economy on 7/Dec/2008 includes a reduction of CENVAT by 4%.

Add to this a reduction in interest rates on car loans will also help the auto manufacturers.

Sowmya · 7th December 2008, 23:28

I believe the small rate cut is not going to Boost the Sales of the Car. GOVT is only giving focus to the corporate. But sentiment of the Common man will still not going to change until they pass some real benefit to Customer. Like
1. Reducing Car PRICE (Low margin On Profit)
2. Give Some Tax benefit to Common Man (Potential Buyer)

theMAG · 8th December 2008, 00:05

This definitely is good news for the mainstream Indian car buyer. I truly hope this provides a necessary stimulus for the currently-gloomy Indian car market. Now, if only states followed suit and reduced local taxes.

jesal · 8th December 2008, 00:43

so should i wait for new prices for maruti i am going to pay the check for swift please advise asap. cheers. that means the price of swift should come down by around 20k ??? woohoo

danlalan · 8th December 2008, 00:51

Quote:

Originally Posted by jesal

so should i wait for new prices for maruti i am going to pay the check for swift please advise asap. cheers. that means the price of swift should come down by around 20k ??? woohoo

20k+ More..is what you can put for a good set of Alloys and tires.

sudipt123 · 8th December 2008, 01:48

Will I get benefit of this price reduction? I have made down payment for the Chevrolet Spark and made down payment. The car loan is supposed to get processed by today. Not yet taken delivery. Please advise.

7th December 2008, 19:25	#1
car_crazy1400 BHPian Join Date: Feb 2005 Location: DL/UP16/PB10 Posts: 652 Thanked: 343 Times	4 % reduction in car prices Just read this on CNBC on tv that the central government has reduced the CENVAT (excise) on all things (including cars) , besides petroleum products by 4%. Maruti has already said they will pass on the benefit to the consumers. While M&M has said on their higher models , they will pass on 4% plus some more benefits. I do hope that all car companies follow suit & car prices get reduced & Discounts (existing ones , like 55k off the Toyota Innova , till morning) are still given. Mods : Please merge if a smilar thread exists as I wasn't able to find any.
	() Thanks

7th December 2008, 19:30	#2
ravibhat Senior - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 2,256 Thanked: 37 Times View My Garage	Thats good move which is expected couple of months back itself. Now every car makers would come with BIG Ads with more benefits including this 4% reduction. Its good benefit to customers I expect March-April might be best time to buy cars, however present offers are equally good too. Regards, Ravi.
	() Thanks

7th December 2008, 19:55	#3
car_crazy1400 BHPian Join Date: Feb 2005 Location: DL/UP16/PB10 Posts: 652 Thanked: 343 Times	Now even Honda Motors India says that they will pass on the reduction in CENVAT's benefit to consumers. This will cause a price reduction for all the vehicles including commercial vehicles & motorcycles. But if this is enough to boost the fledgling sales of indian automotive sector, remains to be seen. I think the auto companies will now reduce the discounts (or remove them altogether on some models), that were being offered till now due to the year end & drop in sales. Last edited by car_crazy1400 : 7th December 2008 at 19:58.
	() Thanks

7th December 2008, 20:07	#4
NOTORIOUS BHPian Join Date: Mar 2007 Location: Delhi Posts: 808 Thanked: 124 Times View My Garage	Thank you sir for this grat news , just enquired about this from my salesman for swift vdi and he said that it is only in news and will be in effect in a day or two. he also adds that final price is what applicable on the time of delievery.but just imagine , i am getting my swift for 23k less. it means ABS is free . OT : i think this topic should be in Indian Car Scene section !!! Last edited by NOTORIOUS : 7th December 2008 at 20:10.
	() Thanks

7th December 2008, 20:11	#5
bblost Team-BHP Support Join Date: Jul 2007 Location: Hyderabad Posts: 11,100 Thanked: 16,264 Times View My Garage	Maruti cuts prices, others likely to follow
	() Thanks

7th December 2008, 20:24	#6
JVille07 BHPian Join Date: Nov 2008 Location: Chennai Posts: 76 Thanked: 5 Times	VAT cut will reduce the car prices ? Today Govt announced a fin. package including tax cuts to boost economy with a 4 % cut in Value Added Tax to help the corporate sector in general. Will this VAT cut will reduce the car prices ? What do you think? Mods: Please move this to app. thread if I wrongly uploaded
	() Thanks

7th December 2008, 21:05	#7
SilentEngine Senior - BHPian Join Date: Jan 2008 Location: KA19,KA04 Posts: 1,167 Thanked: 737 Times View My Garage	Maruti has already announced price cut effective from midnight. Others may follow
	() Thanks

7th December 2008, 21:20	#8
monty9991 BANNED Join Date: Oct 2007 Location: Ludhiana Posts: 706 Thanked: 42 Times View My Garage	is it VAT or EXCISE DUTY ? as VAT is applicable only within stat. or othervise it is CST if we buying anything out of our state. correct me if i am wrong.
	() Thanks

7th December 2008, 21:24	#9
JVille07 BHPian Join Date: Nov 2008 Location: Chennai Posts: 76 Thanked: 5 Times	Congrats on your century !! Yes , Maruti announced a 4% price cut eff. midnight as a response to FM's stimulus package..I think other car makers will follow the same Monty, They reduced CENVAT by 4 %. see the link with the details of Auto majors who announce price cuts Car prices to go down; automakers see demand on fast lane- Automobiles-Auto-News By Industry-News-The Economic Times As per this for an Alto minimum price cut will be Rs. 8000/- I think CENVAT and Excise duty are same. Am I right? Sorry I missed to include this in my previous reply Note from the Team-BHP Support Staff : Please use the "edit" button if posting within 15 minutes of the first post, instead of creating another back-to-back post Also use "Multi Quote" option for quoting Multiple posts. Last edited by Technocrat : 7th December 2008 at 21:52. Reason: see note in post
	() Thanks

7th December 2008, 23:02	#10
freddie BHPian Join Date: Jun 2008 Location: Mumbai Posts: 55 Thanked: 0 Times	Something to Cheer about - Car prices to reduce It seems that car prices could go down by 4% as part of the package the Government unveiled to boost the fledging economy on 7/Dec/2008 includes a reduction of CENVAT by 4%. Add to this a reduction in interest rates on car loans will also help the auto manufacturers.
	() Thanks

7th December 2008, 23:28	#11
Sowmya BHPian Join Date: May 2007 Location: Bangalore Posts: 493 Thanked: 19 Times View My Garage	I believe the small rate cut is not going to Boost the Sales of the Car. GOVT is only giving focus to the corporate. But sentiment of the Common man will still not going to change until they pass some real benefit to Customer. Like 1. Reducing Car PRICE (Low margin On Profit) 2. Give Some Tax benefit to Common Man (Potential Buyer)
	() Thanks

8th December 2008, 00:05	#12
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,811 Times View My Garage	This definitely is good news for the mainstream Indian car buyer. I truly hope this provides a necessary stimulus for the currently-gloomy Indian car market. Now, if only states followed suit and reduced local taxes.
	() Thanks

8th December 2008, 00:43	#13
jesal BANNED Join Date: Apr 2004 Location: Mumbai Posts: 2,323 Thanked: 13 Times View My Garage	so should i wait for new prices for maruti i am going to pay the check for swift please advise asap. cheers. that means the price of swift should come down by around 20k ??? woohoo
	() Thanks

8th December 2008, 01:48	#15
sudipt123 BHPian Join Date: Feb 2008 Location: Mumbai Posts: 198 Thanked: 70 Times	Will I get benefit of this price reduction? I have made down payment for the Chevrolet Spark and made down payment. The car loan is supposed to get processed by today. Not yet taken delivery. Please advise.
	() Thanks