[.anshuman]

Originally Posted by Sahil

There is no way the price of a 7 series/S-class,etc is going to come down to 50 lakhs ! Thats wishful thinking, even if duty is cut drastically the manufacturers will not lower prices to this extent instead they will pocket the hefty profit and avoid price corrections across their CKD line up.

When can we expect a final decision or action plan on the same? Time and again there are articles on duty and tax reductions on luxury cars but seldom does anything materialize out of them.

+1 to what Sahil said above.

Even if the duty on the CBU cars comes down, the manufacturers might not lower the prices much to protect other locally manufactured cars in their line-up.

Mercedes S class at 50 lakhs and Jaguar XF at 30 lakhs is wishful thinking. Realistically i expect minor correction pricing of some high end CBU models, that's it.

[kapss]

I think such a tax cut should have been done initially for hybrid/electric cars or maybe cars with high 5/5 NCAP ratings. Since such technologies are not available with Indian manufacturers and the high import duties are deterrent for the customers, having a reduced tax would have promoted better safety and lower pollution norms.
Cutting taxes in one go for all kinds of cars could be disruptive. If such a move is to be made, then duties on CKD's need to be brought down drastically to promote investment here too.

[ACM]

I some how don't see this happening this year or atleast to the scale predicted. The Players like Maruti, TATA, Mahindra, Hyundia would be severely affected if this were to go through.

Govt. though may do this in phases and we may see the first phase at this year budget.

Though Maruti and Hyundai are not really domestic players, they have made massive investments in India and do a lot of exports that contribute to our economy.

One line of thought suggests that this would affect only the premium segment players and none of the domestic players are strong in that segment, but that is exactly the point, TATA and Mahindra are attempting to enter the premium segment with vehicles like the Aria, the W201, etc, and with the recent technological acquistions are poised to introduce more such options in the coming years.

Yep one would love to see the XC60 around 25 but then the X1 would be closer to 18? and the the fortuner would be out of business.

[Abhi_Automobile]

I can understand why companies like Merc and BMW may be reluctant to actually lower their car's prices. However, why would companies like Jaguar and VOlvo not lower the prices of their cars. They are not locally manufactured. And with agressive pricing, they can actually cut the throat of competetion at one go.

On a practical not, such things and developments keep on taking place in India, somehow, nothing chnages on the ground How many times have we seen such things been published. How many times has anything changed?

[S_U_N]

There is another thread which is discussing the same topic, I believe.
http://www.team-bhp.com/forum/indian...s-reduced.html

[Akshay1234]

I really do hope it happens but I dont see prices coming down to those levels anytime soon. Maybe they will lower prices slowly over a few years. But at least we are heading in the right direction.

[Mafia]

looks like another if only news! I am not adding anything new to what the companies will do!

But if a price war were to start, it could be from the japanese side as India has a trade agreement with them also, tax cuts will be given to the japs as well!

[Speeding@160mph]

I'm quite skeptical of this having any real benefit for us in the near future.

An FTA of this sort will not allow for Immediate reductions but in the highest of probability in phases upto 10 years.

India signed a similar FTA with Japan but I'm certain Auto's were not part of the tariff removals. Some Auto parts are on the list though but to be phased out over a span of 10 years.

Most importantly, keep in mind, the 110% higher price we pay goes directly to the government. There is no way they will completely eliminate this source of income, however tiny it may be in the bigger picture. (I would be curious to know what the Annual receipts are in Import duty, VAT etc on CBU cars - Anybody good wih RTI's?)

In my opinion, at best, we can hope for a nominal reduction in taxes/duties, simply as an offering of co-operation/settlement to the European governments. After all, they want to do business in our country as much as we in theirs.

[mayankk]

bah..no want 7 series/q7's etc...Does this expand to individuals?or can it in the foreseeable future?does this news imply that i can bring in a caterham, at a (compared to before) reasonable cost?or a fiesta ST?

[ra'ul M]

Seriously who came up with this policy The govt. is taking the easy way out here without analyzing the bigger picture. IMHO they will have to backtrack a bit before inking it or it will set the cat amongst the pigeons.

Rather they should promote technology and innovation. I dont think anyone would mind a Prius in 15 lacs as opposed to what it costs today so that people can go green without going bankrupt

[tsk1979]

All other industries are protected with an import duty ranging from 10% to 30%
Why should Auto manufacturers get a protection of 60%?
Yes I know protection of industry, development, Yada yada yada (Fill your essay here)... but then its a free market, and other industries are doing fine with 10-30% duty. Maybe its time the local mfrs stopped taking the customer for granted and started producing truly world class products.

Speaking of duty reduction, I am wondering what will happen to a German SUVs which would have cost 25 lakhs(medium sized products from VW stable etc.,) but now will cost 14-15L?

What about the 20L X1, is it CKD or CBU, I am not sure.

[mayankk]

x1 is CKD as of now.
How will this affect it?

damn, it was looking affordable earlier, but if that tag heads south, then i will have to requantify my goals!!
a beemer before 35!!

[harimakesh]

Maximum Import duty at 30% is sufficiently providing protection for indian employment and investments.

It is time that Indian auto industries stop lobbying politicos with their license raj attitude.

Indian auto companies need to stand on to compete others with their quality product.

BMW 3 and X1 will cost less than 14L in such scenario.

Suzuki SX4 diesel at near 9 lakhs appearing to indians as VFM needs to come to an end.

It is hight time for these duty to be lowered.

Indians have all the rights to enjoy better cars at genuine price tag.

[Warhound]

If manufacturers wont reduce the prices, whats to stop people from importing their own vehicles !?

[Swanand Inamdar]

I feel this would have minimal effect on the existing pricing. AS most of us have rightly pointed out, the people benefetting most from this would be the manufacturers themselves.

At the most they might reduce the prices say, by a few lac rupees and thats that. Customer happy, manufacturer happy!