Prices of Imports set to come down drastically !!

Yeldo · 28th February 2011, 19:27

If the talk of all these free trade/ bilateral trade agreements are true, then what on earth was the point in GATT/ WTO in the first place? And since many of the European and Japanese auto majors have manufacturing facilities in India, how could they possibly benefit out of it? Is it possible to manufacture a Polo or Civic at a lower cost in EU or Japan than here in India?

Regarding alternative energy vehicles, is the technology mature enough to withstand and operating environment as diverse as our country?

SunilM · 28th February 2011, 21:12

Quote:

Originally Posted by Aroy

We are all harping on the high costs of cars in India, but the price consists of huge tax component (about 50%, ex-showroom), and the import duty is to offset this tax component ... Let us pray for the duties/taxes to come down. All of us benifit then.

That is a huge figure. Half the cost of a car's ex showroom is taxes? I assume you have included all duties, excise, taxes, VAT etc etc in it. I knew tax rates on domestic cars were high in India, but this is news to me!

Aroy or somebody have a link for these details? any breakup? A Toyota Corolla around 5Lac ex-showroom (hypothetically, without taxes) is something

DicKy · 28th February 2011, 22:00

@SunilM, It's not 50% , but still don't be surprised it's a huge 40%.
A corolla will be only about 6 lakhs.
If so, look at the prices of Indica/Indigo in middle east.
Agree that they have ridiculous low prices and almost nil taxes, but still Indica for 2.4 lacs, Indigo for 2.7 lacs and Indigo Marina for 3 lacs, shows us the true prices of the car.
Mind you these are the full spec models with ABS/airbags, not the bare bone ones. And that too after importing costs(no import duty there).

wartikars · 1st March 2011, 10:37

Is it true that the Prices of Imports will come down due to reduction in import duty? When is this going to be implemented? There would be a feast of imported beauties on the road then (esp. the Beetle).

thesilentone · 1st March 2011, 10:54

An article in today's Times of India mentions that the FM has quietly changed the norms for CKD. Engines and other parts which come fully imported donot come under the category of CKD

It also mentions that cars like the BMW 3 series, X1, etc., are likely to see an increase of around 6 lakhs due to this norm being tampered

This means that while all of us expected the prices of imports to come down, the FM has bowled us a googly. Can anybody in Chennai post a link to the article?

rkap01 · 1st March 2011, 11:05

Quote:

Originally Posted by wartikars

Is it true that the Prices of Imports will come down due to reduction in import duty? When is this going to be implemented? There would be a feast of imported beauties on the road then (esp. the Beetle).

Budget is out! no mention of any reduction!! or did I miss something?

andyb · 1st March 2011, 12:05

@silentone, you are right about the article and the interpretation is correct too. But this is a proposal and I am sure that the companies that have invested in infrastructure for the CKD's would lobby hard for this not to go through.

I happened to talk to a BMW dealer today as I have paid the booking amount for the 3 series and was wondering if my price which was decided upon would change. he was very candid that the proposal is very much there and could go through. Fingers crossed.

scphanse · 1st March 2011, 13:15

Read all the 9 pages with bated breath, had to take my astama puff once. Hey Guys pls dont joke with me. FTA or No FTA I doubt manufacturers like BMW, Audi, Mercedes will slash their prices by that margin (I fervently pray to be proved wrong).
I am wondering what will happen to the 2nd sale market..Yaay

zulfi hansi · 1st March 2011, 20:13

The Govt. has told us 'take a hike...', now that done this thread can R.I.P., so long for the hopes.

Bhatman · 2nd March 2011, 11:42

Read TOI news clip today. It seems that there is some confusion regarding exemption on CKD kits in the new budget. The fine print says no concessions on the CKD kits like assembled engines gear boxes etc. Need to understand more details.

mayankk · 2nd March 2011, 11:58

it means that there is none, or little use in choosing between ckd or cbu.
it also means for us, that as far having 20-40% decline in sale prices of these vehicles, its a damp squib.
lets get back to the humdrum life......
like one comment said here, we've been told to "take a hike"...

aviral2122 · 2nd March 2011, 15:17

I might sound a little off-topic, but by when does the effect of new policy come in to being.

I know the new budget will be applicable by april 1st, but does it really mean that prices will also increase then or will it take some time for the "new policied" stock to come into the showrooms.

mayankk · 2nd March 2011, 15:32

Ummm...i think the dealers, if not the firms themselves, will be on an "ASAP" policy, where the new prices will have come into effect just 5 minutes earlier, from when you walk into the showroom, figuratively.
jokes aprt, i'd say 31st march onwards, or on stock dated 31st march onwards.
here's the gist as i gathered, for cars that benefited from the earlier policy, and if you were planning to buy them, well, too bad...

3 and 5 series, x1
C- and E-Class
A4 A6 Q5 .
fortuner, jetta, passat, endy(?)

time to turn the thread title 180 degs, innit?

aviral2122 · 2nd March 2011, 15:43

Quote:

Originally Posted by mayankk

I'd say 31st march onwards, or on stock dated 31st march onwards.

that is the question my boy, that is what i intended to ask. Thanks anyways.

the VTEC guy · 2nd March 2011, 17:21

So all the anticipation goes for a toss. Instead what was earlier cheaper is intended to cost more now. All the arguing of policy to allow more localisation, creating jobs for Indians etc does not seem to be the driving factors. Govt. seems to have decided on the policy of milking more from where you can get from.

28th February 2011, 19:27	#121
Yeldo BHPian Join Date: Feb 2008 Location: Kochi Posts: 764 Thanked: 783 Times	Re: Prices of Imports set to come down drastically !! If the talk of all these free trade/ bilateral trade agreements are true, then what on earth was the point in GATT/ WTO in the first place? And since many of the European and Japanese auto majors have manufacturing facilities in India, how could they possibly benefit out of it? Is it possible to manufacture a Polo or Civic at a lower cost in EU or Japan than here in India? Regarding alternative energy vehicles, is the technology mature enough to withstand and operating environment as diverse as our country?
	() Thanks

28th February 2011, 22:00	#123
DicKy Distinguished - BHPian Join Date: Jan 2010 Location: TVPM Posts: 3,823 Thanked: 11,761 Times	Re: Prices of Imports set to come down drastically !! @SunilM, It's not 50% , but still don't be surprised it's a huge 40%. A corolla will be only about 6 lakhs. If so, look at the prices of Indica/Indigo in middle east. Agree that they have ridiculous low prices and almost nil taxes, but still Indica for 2.4 lacs, Indigo for 2.7 lacs and Indigo Marina for 3 lacs, shows us the true prices of the car. Mind you these are the full spec models with ABS/airbags, not the bare bone ones. And that too after importing costs(no import duty there).
	() Thanks

1st March 2011, 10:37	#124
wartikars BHPian Join Date: Nov 2009 Location: Pune Posts: 168 Thanked: 12 Times View My Garage	Re: Prices of Imports set to come down drastically !! Is it true that the Prices of Imports will come down due to reduction in import duty? When is this going to be implemented? There would be a feast of imported beauties on the road then (esp. the Beetle).
	() Thanks

1st March 2011, 10:54	#125
thesilentone BHPian Join Date: Oct 2010 Location: Chennai Posts: 267 Thanked: 329 Times	Re: Prices of Imports set to come down drastically !! An article in today's Times of India mentions that the FM has quietly changed the norms for CKD. Engines and other parts which come fully imported donot come under the category of CKD It also mentions that cars like the BMW 3 series, X1, etc., are likely to see an increase of around 6 lakhs due to this norm being tampered This means that while all of us expected the prices of imports to come down, the FM has bowled us a googly. Can anybody in Chennai post a link to the article?
	() Thanks

1st March 2011, 12:05	#127
andyb BHPian Join Date: Aug 2009 Location: Mumbai Posts: 48 Thanked: 3 Times	Re: Prices of Imports set to come down drastically !! @silentone, you are right about the article and the interpretation is correct too. But this is a proposal and I am sure that the companies that have invested in infrastructure for the CKD's would lobby hard for this not to go through. I happened to talk to a BMW dealer today as I have paid the booking amount for the 3 series and was wondering if my price which was decided upon would change. he was very candid that the proposal is very much there and could go through. Fingers crossed.
	() Thanks

1st March 2011, 13:15	#128
scphanse BHPian Join Date: Feb 2011 Location: Pune Posts: 115 Thanked: 16 Times	Re: Prices of Imports set to come down drastically !! Read all the 9 pages with bated breath, had to take my astama puff once. Hey Guys pls dont joke with me. FTA or No FTA I doubt manufacturers like BMW, Audi, Mercedes will slash their prices by that margin (I fervently pray to be proved wrong). I am wondering what will happen to the 2nd sale market..Yaay
	() Thanks

1st March 2011, 20:13	#129
zulfi hansi BHPian Join Date: Aug 2010 Location: Bangalore Posts: 996 Thanked: 383 Times	Re: Prices of Imports set to come down drastically !! The Govt. has told us 'take a hike...', now that done this thread can R.I.P., so long for the hopes.
	() Thanks

2nd March 2011, 11:42	#130
Bhatman Newbie Join Date: Sep 2010 Location: Gurgaon Posts: 15 Thanked: 19 Times	Re: Prices of Imports set to come down drastically !! Read TOI news clip today. It seems that there is some confusion regarding exemption on CKD kits in the new budget. The fine print says no concessions on the CKD kits like assembled engines gear boxes etc. Need to understand more details.
	() Thanks

2nd March 2011, 11:58	#131
mayankk Distinguished - BHPian Join Date: Apr 2010 Location: New Delhi Posts: 5,148 Thanked: 8,168 Times View My Garage	Re: Prices of Imports set to come down drastically !! it means that there is none, or little use in choosing between ckd or cbu. it also means for us, that as far having 20-40% decline in sale prices of these vehicles, its a damp squib. lets get back to the humdrum life...... like one comment said here, we've been told to "take a hike"...
	() Thanks

2nd March 2011, 15:17	#132
aviral2122 BHPian Join Date: Aug 2009 Location: New Delhi Posts: 123 Thanked: 87 Times	Re: Prices of Imports set to come down drastically !! I might sound a little off-topic, but by when does the effect of new policy come in to being. I know the new budget will be applicable by april 1st, but does it really mean that prices will also increase then or will it take some time for the "new policied" stock to come into the showrooms.
	() Thanks

2nd March 2011, 15:32	#133
mayankk Distinguished - BHPian Join Date: Apr 2010 Location: New Delhi Posts: 5,148 Thanked: 8,168 Times View My Garage	Re: Prices of Imports set to come down drastically !! Ummm...i think the dealers, if not the firms themselves, will be on an "ASAP" policy, where the new prices will have come into effect just 5 minutes earlier, from when you walk into the showroom, figuratively. jokes aprt, i'd say 31st march onwards, or on stock dated 31st march onwards. here's the gist as i gathered, for cars that benefited from the earlier policy, and if you were planning to buy them, well, too bad... 3 and 5 series, x1 C- and E-Class A4 A6 Q5 . fortuner, jetta, passat, endy(?) time to turn the thread title 180 degs, innit? Last edited by mayankk : 2nd March 2011 at 15:35.
	() Thanks

2nd March 2011, 17:21	#135
the VTEC guy BHPian Join Date: Oct 2008 Location: Pune Posts: 564 Thanked: 140 Times View My Garage	Re: Prices of Imports set to come down drastically !! So all the anticipation goes for a toss. Instead what was earlier cheaper is intended to cost more now. All the arguing of policy to allow more localisation, creating jobs for Indians etc does not seem to be the driving factors. Govt. seems to have decided on the policy of milking more from where you can get from.
	() Thanks