Re: Prices of Imports set to come down drastically !! Quote:
Originally Posted by mac187 Though, it is a good thing for the customer. I feel its not such a great thing for the Indian Economy. When the Japs/ Koreans spotted potential in India and built large factories providing employement and also developing ancillary units in India. These europeans didn't want to come here.
IMO, this deal is a boon for the european manufacturing Industry, a raw deal to Indian industry. |
Possibly because at the time the Japs & Koreans came, the Indian economy was not at a stage where it'd be viable for the European companies products to be able to do the required numbers. What we got initially were very low spec cars & cheap (by today's standards) The Indian economy has now matured to a stage where people can & are willing to spend big bucks on fancy cars & other items of luxury. Quote:
Originally Posted by vinaydas only people benefiting from the above is the companies themselves.
so don't expect to buy a 7 series for 35-50 lacs any time soon. |
I do not agree with your POV, atleast going by what the newspaper reports. Quote:
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. |
As per the newspapers that is what it may end up being. If the companies do not pass on the duty cut to the customer, the government will certainly not let them alone take the benifit, would they ? Let's see what comes out of it. Quote:
Originally Posted by swiftnfurious +1 . I too feel the same. Since these cars which are already sold at the current prices [7 series for 85 lakhs & XC60 for 45 or so], I think the companies might keep it at the current prices and make a good profit out of it. Or say if the 7 series prices come down to 50 lakhs, what about the current customers who paid a whopping 85 lakhs? and similar for other brands.
And another question is even if the duties are taken off and the prices fall down drastically, will the manufacturers make the same profit with the reduced prices? ie, If there is 5 lakh profit on the 7 series selling at 85 lakhs and if the prices fall to 50 lakhs after this pact, will the manufacturer still make 5 lakhs profit? Edit: Will this policy have an effect on importing the used cars from UK and all [the TR mode of importing] at reduced prices ? |
The profit margin of the manufacturer is not reduced (from what I understand) the cut is on the import duty alone.
I do not think the cut is likely to be extended to used cars per se. Parts maybe. Quote:
Originally Posted by low_bass_makker Saw this article on the front page of the new paper, is this true ??? Attachment 506120
Mods Ji please move the thread to the correct section. |
This is the article under discussion. Thanks for putting up the scan Quote:
Originally Posted by VW2010 I beg to differ and feel this change will never happen. The goverment should protect and encourage manufacturers to set up plants inside india and thus enjoying reduced cost.
The reduction in import duty should be on the raw materials as far as i am concerned. |
As it seems today, they are talking of an import duty cut, but what you said may also well be under consideration. Quote:
Originally Posted by .anshuman +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. |
Like I said above - if the duty cut is not passed on to the customer, why would the government let the companies have fatter profits ? Defies logic, but who knows. Quote:
Originally Posted by 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. |
You are correct, as the segment being targeted in the premium segment & the Maruti, Hyundai & tatas to not (yet) cater that segment, with the exception of the Santa Fe maybe. Quote:
Originally Posted by 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. |
Agree with your POV Quote:
Originally Posted by 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. |
Your POV is well taken. Why do we not make local manufacturers up the ante ?? Quote:
Originally Posted by 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. |
Agree in toto !!
Cheers
Last edited by Ricky_63 : 22nd February 2011 at 19:42.
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