[wildon]

Sedans and SUVs like Ford Fiesta, Maruti SX4, Hyundai Verna, Honda Accord, Scorpio and Innova may get cheaper with the heavy industry ministry recommending removal of the additional excise duty slapped on vehicles above 1500cc last year.

The additional duty Rs 15,000 on vehicles above 1,500cc and Rs 20,000 on vehicles above 2000cc was imposed by the government in June last year to control spiralling oil prices by discouraging fuel guzzlers to reduce demand. As crude prices have come down and government wants to revive demand in the auto industry the move to scrap excise assumes significance.

"We have recommended for the removal of these duties in a note to the finance ministry," Surajit Mitra, additional secretary in the ministry of heavy industries, told TOI. He said the step was initiated in order to boost sales of sedans and SUVs, which have been impacted by the slowdown plaguing the industry. "We have to see how best we can help them," he added.

The additional duty had come as a bolt from the blue for the companies last year with most of them crying foul over the step. If implemented, the move will benefit companies like Mahindra, Honda, Ford, Skoda and almost all luxury carmakers like BMW, Audi and Mercedes Benz, though the impact may be marginal for the latter. The final decision will be taken by the finance ministry.

Pawan Goenka, President of Mahindra's Automotive Division, said the step would be beneficial for the sales of the company's vehicles and other industry players. "The market is already in an upswing. And any such measure will add fuel to the fire," Goenka, who is also the V-P for industry body Siam, said. He said Mahindra vehicles, like the newly-launched Xylo mutli-utility, would benefit immensely if the decision was taken.

Michael Boneham, president of Ford India, said, "If the government does scrap the additional duty, it will be positive for sales."

Source: Times Of India

[Takumi-san]

Its time to rejoice people. And what do you know, they even might reduce the price of the SUVs! So heres to all the Scorps and Safaris out there; hope to be joining you soon!


What say people? How does this change your car buying plans? Luxury car brands may cost up to Rs 50k less- Automobiles-Auto-News By Industry-News-The Economic Times

[siedo]

Now there will be more confusion about high end hatch or entry sedan since price points will be close.

[AlokSriva]

Mods, please merge this thread with an already existing one (http://www.team-bhp.com/forum/indian...-50k-less.html) opened prior to this.

[gowda79]

Sedans, SUVs may turn cheaper - Excise Duty On 1500, 2000cc Likely To Go

Pankaj Doval | TNN

New Delhi: Sedans and SUVs like Ford Fiesta, Maruti SX4, Hyundai Verna, Honda Accord, Scorpio and Innova may get cheaper with the heavy industry ministry recommending removal of the additional excise duty slapped on vehicles above 1500cc last year. The additional duty — Rs 15,000 on vehicles above 1,500cc and Rs 20,000 on vehicles above 2000cc — was imposed by the government in June last year to control spiralling oil prices by discouraging fuel guzzlers to reduce demand. As crude prices have come down and government wants to revive demand in the auto industry the move to scrap excise assumes significance.

“We have recommended for the removal of these duties in a note to the finance ministry,” Surajit Mitra, additional secretary in the ministry of heavy industries, told TOI. He said the step was initiated in order to boost sales of sedans and SUVs, which have been impacted by the slowdown plaguing the industry. “We have to see how best we can help them,” he added. The additional duty had come as a bolt from the blue for the companies last year with most of them crying foul over the step. If implemented, the move will benefit companies like Mahindra, Honda, Ford, Skoda and almost all luxury carmakers like BMW, Audi and Mercedes Benz, though the impact may be marginal for the latter. The final decision will be taken by the finance ministry.

Pawan Goenka, President of Mahindra’s Automotive Division, said the step would be beneficial for the sales of the company’s vehicles and other industry players.

“The market is already in an upswing. And any such measure will add fuel to the fire,” Goenka, who is also the V-P for industry body Siam, said. He said Mahindra vehicles, like the newly-launched Xylo mutli-utility, would benefit immensely if the decision was taken.

Michael Boneham, president of Ford India, said, “If the government does scrap the additional duty, it will be positive for sales.”

[sjcherian]

Good news indeed. The 15K/ 20K price reduction when it comes through will just translate into money left over for accessorizing the vehicle. Most of these vehicles of 1500cc and higher cost 6L plus. People planning to spend that much will do so regardless of the price as was seen by the sales last year. I just doubt there will be a huge increase in the sales for these vehicles. Also the govt seems to forget raising the price of the vehicle wont do much to control fuel guzzling. :-)

[Gagan.js]

When I read the title I thought the government was stepping in to stop Indians getting scammed by sedan prices here...

I guess 15-20k isn't a big amount but we'll gladly accept it

[Hades]

a positive step in the right direction, if they also take out the length based tax and bring in a CC based one we are all in for a surprise , but thats just wishful thinking i guess...

[loving_alaap]

What a good move for AAm Admi... by Govt.


Better they decrease some tax on smaller vehicles, if they want to really care for Aam Admi.

By the way, So, Honda City becomes even more overpriced!!

[ram_hyundai]

Good move.Maybe huge pressure from the manufacturers side.Still the increase in volume would compensate for the lost earnings.Or maybe a punch in the back for the new govt to come.lolz

[narayan]

If they do reduce it, I dont think it will make any material impact on sales. But nevertheless , as a customer, this is always welcome

Originally Posted by Hades

a positive step in the right direction, if they also take out the length based tax and bring in a CC based one we are all in for a surprise , but thats just wishful thinking i guess...

- you may then have big sedans powered by even smaller engines ! !

[GTO]

What it tells me is that our tax authorities are anything but decisive. The additional excise on larger engines was a knee-jerk reaction at best. While a correction is more than welcomed, the govt. needs to realise that they can't impose & dispose as per one man's fancy. Plus, they better realise that larger engines aren't necessarily guzzlers in all cases, a 1.5 liter Altis is more fuel efficient than a 1.2 liter Fabia!

If they have to penalise guzzlers - in the future - do it as per properly regulated FE tests, and not blind engine size parameters.

“We have been hit by the specific excise duty and sales of our Civic sedan more than halved to 7,851 units last fiscal. Other vehicles like the Accord and CRV sports utility vehicles have also been impacted,” said a senior executive of Honda Siel cars.

LOL! This senior exec of Honda is a master of exaggeration! Civic sales are down due to the economic and competitve forces.

[sjcherian]

Isnt there something already there for 1.2 L and lower engines - the whole reason Maruti and Hyundai and Tata came out with a lot of 1.1 & 1.2 litre petrols ?

[Gagan.js]

Ehhm GTO merge threads

Kinda weird how authorities don't realise that small engines can actually use up more fuel than a big one.

Btw, did anyone notice our <10L sedans are actually being called luxurious?

[Mpower]

Originally Posted by GTO

Plus, they better realise that larger engines aren't necessarily guzzlers in all cases, a 1.5 liter Altis is more fuel efficient than a 1.2 liter Fabia!

If they have to penalise guzzlers - in the future - do it as per properly regulated FE tests, and not blind engine size parameters.

Exactly, in the US there is a gas-guzzler tax for any vehicle that cannot meet a specific FE rating (14mpg??).