Car buyers can expect lower prices

DriverR · 2nd March 2009, 20:00

Can the Govt really do this?

Source : Economic Times

Car buyers can expect lower prices

NEW DELHI: Missed out on a good car bargain the last time? Wait, there is relief yet.

In a stride that could see the price tags of cars coming down, the government is understood to be in discussion with automakers to pass on the entire benefit of the four per cent CENVAT cut in December last year, to consumers.

The move comes after some auto majors, including the country's largest carmaker Maruti Suzuki, Hyundai Motor and Toyota Kirloskar, increased their vehicles' prices in the last two months citing rise in input costs and devaluation of the rupee in the international market.

"The Department of Heavy Industries has been asked to see that automobile majors pass on the benefit of the duty cut to consumers," an official source privy to the recent meeting of the Committee of Secretaries said.

guru · 2nd March 2009, 22:17

meh! 4%.. it should have been more substantial imo...

kkr2k2 · 3rd March 2009, 14:48

I heard, the indigo CS LS TDI is being offered at 4.3L On-Road price here in Hyderabad. Normally it would be 5.1L. Thats 80K discount, ofcourse you will get a '08 model.

Raj.

loving_alaap · 3rd March 2009, 16:31

Well, in India, no car company will give full 4% benefit to the customers. They have taken us for granted.

And above all, in today's newspaper TOI, mentioned huge growth in car sales compare to slow down in previous months. So, price reduction.... I dont think.

By the way 80 K is a company discount, its not the govt benefit.

volkman10 · 24th April 2014, 14:40

New JSW steel plant may make cars cheaper.

Quote:

On Wednesday, the steel major formally announced the commissioning of its state-of-the-art Cold Roll Mill (CRM-2) plant to manufacture high-end products like automotive grade steel at its Vijayanagar plant in Toranagallu, about 350 km from Bangalore.
This is the first such facility in the country to manufacture outer body panels for passenger cars.

Quote:

The new facility will benefit the car manufacturers and end buyers as the production cost of cars, SUVs, two-wheelers and home appliances will come down by about 10-15 percent by way of savings on freights, foreign exchange among other expenses. The cutting down on production cost would also provide a major relief to the automotive industry, which is reeling under negative sales growth

Nissan and Honda have already shown keen interest in placing order to manufacture their SUVs in India. We are working with car makers like Honda, Maruti, Toyota, Ford and Mahindra among others for their approval of our automotive steel

http://timesofindia.indiatimes.com/b...w/34123023.cms

mpksuhas · 24th April 2014, 15:03

Quote:

Originally Posted by volkman10

New JSW steel plant may make cars cheaper.

Thanks for sharing, interesting article. However the TOI news looks half cooked, lots of points does not add up.

Production cost of cars, SUVs, two-wheelers and home appliances will come down by about 10-15 percent by way of savings on freights, foreign exchange among other expenses.
Car makers import about 20% of high quality steel from the the estimated 4 million tonnes of auto-grade steel used for making outer body panels in India.
With the launch of the new facility, JSW hopes to meet at least 15% of the demand of automobile industry for high-end products including dual-phase steel and strip steel.

From what I made out from the above three points - JSW hopes to meet 15 % of steel demand of auto industry which imports 20 % of its high quality steel. And manufacturing cost of vehicles and home appliances are supposed to come down by 10-15 % due to savings on freights & foreign exchange.

wilful · 25th April 2014, 06:23

Most carmakers like Maruti, Hyundai, Toyota have frozen the announced price hikes in view of sluggish demand. They are holding on to the old prices despite announcing increases.

http://economictimes.indiatimes.com/...w/34172955.cms

Alive2Drive · 25th April 2014, 11:05

If this happens, it will be a great boost to the automobile industry. I myself am planning to buy a car and would like to now play a waiting game to see if the prices actually go down. I hope this happens (Fingers crossed)

Cooltronics · 25th April 2014, 11:46

Quote:

Originally Posted by Alive2Drive

If this happens, it will be a great boost to the automobile industry. I myself am planning to buy a car and would like to now play a waiting game to see if the prices actually go down. I hope this happens (Fingers crossed)

Prices will not go down but the price hike which was declared would not happen for now with these companies. Some car makers like Volkswagen and Honda have already gone ahead with new car prices since April and I doubt if they will reduce their prices.
You might soon start hearing news from Car makers to buy cars before excise duty cut is revoked by new government and if it happens (good probability), prices will rise once again to pre march levels

Alive2Drive · 25th April 2014, 12:29

Thanks for your help Cooltronics !

I still find it strange. Why would they roll back the excise duty cut. So are you suggesting that the 4% VAT reduction would not reduce the price of the cars ?

2nd March 2009, 20:00	#1
DriverR BHPian Join Date: Mar 2007 Location: Hyderabad Posts: 414 Thanked: 526 Times	Car buyers can expect lower prices Can the Govt really do this? Source : Economic Times Car buyers can expect lower prices NEW DELHI: Missed out on a good car bargain the last time? Wait, there is relief yet. In a stride that could see the price tags of cars coming down, the government is understood to be in discussion with automakers to pass on the entire benefit of the four per cent CENVAT cut in December last year, to consumers. The move comes after some auto majors, including the country's largest carmaker Maruti Suzuki, Hyundai Motor and Toyota Kirloskar, increased their vehicles' prices in the last two months citing rise in input costs and devaluation of the rupee in the international market. "The Department of Heavy Industries has been asked to see that automobile majors pass on the benefit of the duty cut to consumers," an official source privy to the recent meeting of the Committee of Secretaries said.
	() Thanks

2nd March 2009, 22:17	#2
guru BHPian Join Date: Jul 2006 Location: Bangalore Posts: 32 Thanked: Once	meh! 4%.. it should have been more substantial imo...
	() Thanks

3rd March 2009, 14:48	#3
kkr2k2 Senior - BHPian Join Date: Sep 2006 Location: Melbourne, Hyd Posts: 1,294 Thanked: 66 Times View My Garage	I heard, the indigo CS LS TDI is being offered at 4.3L On-Road price here in Hyderabad. Normally it would be 5.1L. Thats 80K discount, ofcourse you will get a '08 model. Raj.
	() Thanks

3rd March 2009, 16:31	#4
loving_alaap BHPian Join Date: Sep 2007 Location: Ahmedabad Posts: 808 Thanked: 9 Times	Well, in India, no car company will give full 4% benefit to the customers. They have taken us for granted. And above all, in today's newspaper TOI, mentioned huge growth in car sales compare to slow down in previous months. So, price reduction.... I dont think. By the way 80 K is a company discount, its not the govt benefit.
	() Thanks

25th April 2014, 06:23	#7
wilful Senior - BHPian Join Date: Oct 2007 Location: cochin Posts: 1,277 Thanked: 1,227 Times	Re: Car buyers can expect lower prices Most carmakers like Maruti, Hyundai, Toyota have frozen the announced price hikes in view of sluggish demand. They are holding on to the old prices despite announcing increases. http://economictimes.indiatimes.com/...w/34172955.cms
	() Thanks

25th April 2014, 11:05	#8
Alive2Drive BHPian Join Date: Jun 2012 Location: New Delhi Posts: 341 Thanked: 236 Times	Re: Car buyers can expect lower prices If this happens, it will be a great boost to the automobile industry. I myself am planning to buy a car and would like to now play a waiting game to see if the prices actually go down. I hope this happens (Fingers crossed)
	() Thanks

25th April 2014, 12:29	#10
Alive2Drive BHPian Join Date: Jun 2012 Location: New Delhi Posts: 341 Thanked: 236 Times	Re: Car buyers can expect lower prices Thanks for your help Cooltronics ! I still find it strange. Why would they roll back the excise duty cut. So are you suggesting that the 4% VAT reduction would not reduce the price of the cars ?
	() Thanks