Budget 2006-2007: Outcome and Comments

Rtech · 16th February 2006, 10:37

Hmm...so looks like we're gonna be in for a rough 06-07.

normally_crazy · 16th February 2006, 10:57

for cars and bikes , excise is going to be cut down but i dont think we as customers will get the full benifit. the duty is coming down 8% , so i see the manufacturers passing on abt 3 % approx to us ......rest will be increase in fuel and freight cost that cancels out the excise duty cut.

petrol prices going up - and if loan interest rates go up as well - i see less cars being bought - thats = more space for current car drivers to drive !

Electronis - pc's , laptops , consumer electronics , mobiles surely have to drop in prices - better to wait if u buying all these.

Scuderia · 16th February 2006, 11:16

Quote:

Originally Posted by Rtech

Hmm...so looks like we're gonna be in for a rough 06-07.

Not rough RT. More of a matured growth - esp 06-07.

Prices, on the whole, may go down, as the taxes (excise) may be reduced. Also, if some kind of sops are provided to companies, esp the SMEs, in terms of power or SEZs etc, it may lead to lowering of the production cost as well - assuming the metal market remains constant.

But, the interest rates may increase - a very high chance - due to a number of reasons.

This, in turn affects the companies margins.

So, all in all, the prices - per se - may fall. But car loans may be expensive.

As far as electronics go, the prices should go down - the rest depends on Mr Chidambaram and co.

EVO6 · 16th February 2006, 12:33

This is my take on the BUDGET....
1. Automobiles Segment... The CVD or EXCISE is going to be slashed from 24% to 16%... Hence making all cars imports and local cheaper... Just not sure whether it will be for small cars or all across the board...

2. Computers ... Already the tax structure is at rock bottom so dont expect anymore reduction in it... Until and unless competition and sales volumes bring the price down

3. Consumer Electronics.. I think this is a very wide field for discussion... Some products the Basic duty will come down from 15% to 10%... So there could be a drop in price... Also in an economic boom period the sales vloumes shoot up drastically hence transalating in the price drop.. Dont think the local tax structure might change too much..

Just hoping that corporate tax shud come down a little bit which cud be passed on to consumer and hence reduce the price a bit...

All the best guys...
Cheers..

devarshi84 · 17th February 2006, 03:21

If I am thinking in the right way I see Tata using its powers to force the government to revise policies so that it can make the 1.00lakh dream car possible.

haryan · 17th February 2006, 17:35

Quote:

Originally Posted by Rtech

In laymens terms, what does this translate for you & me?

1. Price of cars & bikes (new & used imports as well)?
2. Price of PC's/laptops?
3. Price of consumer electronics?

Basically, if we're thinking of picking up one of the above items, should we wait or go ahead...

Taxes for the above 3 will fall .. thats a definite thing to happen and for our Economy to boom ..
The Budget 2006 will be a FEEL GOOD affair .. For the masses , for the Sensex and For UPA coalition ...
But the MOST WORRYING factor is the FUEL pricing ...
they do not show any signs of going down in recent future

BuRnT RuBbEr · 17th February 2006, 19:24

Quote:

Originally Posted by devarshi84

If I am thinking in the right way I see Tata using its powers to force the government to revise policies so that it can make the 1.00lakh dream car possible.

i am against a 1-lakh car. largely because we dont have roads to let them keep the rubber side down....

typeOnegative · 17th February 2006, 19:51

Please please spare petrol ... raise the price of diesel for a change *evil smile*

2L8uLoose · 18th February 2006, 10:05

Quote:

Originally Posted by devarshi84

If I am thinking in the right way I see Tata using its powers to force the government to revise policies so that it can make the 1.00lakh dream car possible.

OH JOY TO THE WORLD.... give more idiots the use of 4 wheels when they are bad enough on 2

I can just picture it... the people who like to take their entire family and the kitchen sink for a ride on their scooter will just have more place to pack into a Tata like sardeens in a tin can... WHOOP DE FREAKIN DOO!!!!

tifosikrishna · 28th February 2006, 12:24

just out, excise duty cut 16% only for small cars.

dwarakv · 28th February 2006, 12:31

What are the small cars? Based on cc or some other factors?

tifosikrishna · 28th February 2006, 12:34

Quote:

Originally Posted by dwarakv

What are the small cars? Based on cc or some other factors?

dont have any more info on that....

Joz · 28th February 2006, 12:37

Good news for small car manufacturers.

All petrol cars with less than 1200 cc engine and less than 4000 mm length have excise duty reduced from 24 % to 16%
All diesel cars with less than 1500 cc engine and less than 4000 mm length get excise duty cut from 24 % to 16 %

Clearly Maruti and Hyundai are the winners due to the first clause and Tata due to the second. The indica Xeta might miss the bus again as it is 1300 cc.

The revised excise duty should also see India becoming an global manufacturing hub for small cars.

Think Maruti has already announced a price cut in their range. I loose on the resale value

Shall post more as it comes through.

Joz · 28th February 2006, 12:42

Just realised Palio is 1242 cc. Damn!!! This means all the petrol small cars which are remotely related to Tata are gonna have it rough.

tifosikrishna · 28th February 2006, 12:45

Quote:

Originally Posted by Joz

All diesel cars with less than 1800 cc engine and less than 4000 mm length get excise duty cut from 24 % to 16 %

Shall post more as it comes through.

are you sure, its 1800cc for diesel, i read its 1500cc for diesels.

16th February 2006, 10:37	#16
Rtech Team-BHP Support Join Date: Apr 2004 Location: Bombay Posts: 5,770 Thanked: 359 Times View My Garage	Hmm...so looks like we're gonna be in for a rough 06-07.
	() Thanks

16th February 2006, 10:57	#17
normally_crazy Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 4,369 Thanked: 528 Times View My Garage	for cars and bikes , excise is going to be cut down but i dont think we as customers will get the full benifit. the duty is coming down 8% , so i see the manufacturers passing on abt 3 % approx to us ......rest will be increase in fuel and freight cost that cancels out the excise duty cut. petrol prices going up - and if loan interest rates go up as well - i see less cars being bought - thats = more space for current car drivers to drive ! Electronis - pc's , laptops , consumer electronics , mobiles surely have to drop in prices - better to wait if u buying all these.
	() Thanks

16th February 2006, 12:33	#19
EVO6 BHPian Join Date: Apr 2005 Location: Pune Posts: 488 Thanked: 11 Times	This is my take on the BUDGET.... 1. Automobiles Segment... The CVD or EXCISE is going to be slashed from 24% to 16%... Hence making all cars imports and local cheaper... Just not sure whether it will be for small cars or all across the board... 2. Computers ... Already the tax structure is at rock bottom so dont expect anymore reduction in it... Until and unless competition and sales volumes bring the price down 3. Consumer Electronics.. I think this is a very wide field for discussion... Some products the Basic duty will come down from 15% to 10%... So there could be a drop in price... Also in an economic boom period the sales vloumes shoot up drastically hence transalating in the price drop.. Dont think the local tax structure might change too much.. Just hoping that corporate tax shud come down a little bit which cud be passed on to consumer and hence reduce the price a bit... All the best guys... Cheers..
	() Thanks

17th February 2006, 03:21	#20
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad - Tor Posts: 4,024 Thanked: 211 Times View My Garage	If I am thinking in the right way I see Tata using its powers to force the government to revise policies so that it can make the 1.00lakh dream car possible.
	() Thanks

17th February 2006, 19:51	#23
typeOnegative Senior - BHPian Join Date: Oct 2004 Location: Vikhroli, Mumbai, India Posts: 1,503 Thanked: 27 Times	Please please spare petrol ... raise the price of diesel for a change evil smile
	() Thanks

28th February 2006, 12:24	#25
tifosikrishna BHPian Join Date: Oct 2005 Location: chennai Posts: 827 Thanked: 383 Times View My Garage	just out, excise duty cut 16% only for small cars.
	() Thanks

28th February 2006, 12:31	#26
dwarakv BHPian Join Date: Aug 2005 Location: Chennai Posts: 26 Thanked: 0 Times	What are the small cars? Based on cc or some other factors?
	() Thanks

28th February 2006, 12:37	#28
Joz BHPian Join Date: Jul 2005 Location: Dubai Posts: 247 Thanked: 2 Times	Budget 2006: Anncounced Good news for small car manufacturers. All petrol cars with less than 1200 cc engine and less than 4000 mm length have excise duty reduced from 24 % to 16% All diesel cars with less than 1500 cc engine and less than 4000 mm length get excise duty cut from 24 % to 16 % Clearly Maruti and Hyundai are the winners due to the first clause and Tata due to the second. The indica Xeta might miss the bus again as it is 1300 cc. The revised excise duty should also see India becoming an global manufacturing hub for small cars. Think Maruti has already announced a price cut in their range. I loose on the resale value Shall post more as it comes through. Last edited by Joz : 28th February 2006 at 12:54.
	() Thanks

28th February 2006, 12:42	#29
Joz BHPian Join Date: Jul 2005 Location: Dubai Posts: 247 Thanked: 2 Times	Just realised Palio is 1242 cc. Damn!!! This means all the petrol small cars which are remotely related to Tata are gonna have it rough.
	() Thanks