Excise Duty on Small Cars and SUVs Reduced in Budget 2014


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By doing this cut what does the Fin Minister achieve?
Why didn't he do it in the last budget ,when the Automobile industry was really in the doll drums?
For SUVs why did he increase it last time and now decrease it?
I have some answers.
But these are questions everyone in auto field must think about.[;)]
Especially in an election year.
Good decision by FM.I think it will change the fortune of the automobile industry.
Hahahahaha, my dear friends, do you guys seriously think that FM has shown a great concern about the Auto industry, this cut is just limited to the coming elections, nothing else[:)]. So whatever is the reason, this is the best time to buy a car if you are planning for one till the next budget comes into effect by a new government
 
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Good election strategy by FM. [glasses]

Pros
For common man its good news that you can save that extra buck for some other purposes. More and more people will think about buying a vehicle

Cons
Inflation will once again soar up
More oil to be imported leading to higher crude prices
Increased pollution
Be prepared to spend long hours in traffic

[evil]
 
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Maruti to cut prices 'immediately'

NEW DELHI: Country's top carmaker Maruti Suzuki will cut prices "immediately" after the government announced a cut in excise duty in the vote on account.

"Prices cuts will happen immediately," Maruti chairman RC Bhargava told TOI here. Models that will get cheaper include the Alto, WagonR and Swift hatchbacks and others like the Ertiga MPV and Dzire sedan.

P Chidambaram cut the duty on small cars and 2-wheelers from 12% to 8% while also reducing the duty on bigger cars and SUVs.


Bhargava said that the government's measure will help pull the car industry out of the slowdown it currently is in. "This will certainly give an impetus to buy new cars."

However, he added that the real benefit of the measure will be if it is maintained in the regular budget that will be presented by the new government.

Source - Maruti to cut prices 'immediately' - The Times of India
Here is the link to price list.

http://www.marutisuzuki.com/maruti-price.aspx.

Looks like they are yet to update it. Any idea how many days it will take to get the new prices reflected?
 
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Budget 2014, Excise duty on cars, Bike reduced !!!!

Here is good news for New Car Buyers.[:)][:)][:)]
The excise duty on small cars is being slashed from 12% to 8%. The excise duty on medium-sized cars and large-sized cars will be reduced from 24% to 20% and 27% to 24% respectively. SUVs will now attract an excise duty of 24% instead of 30%. Excise duty on motorcycles and scooters will also be slashed from 12% to 8%. These rates will be reviewed at the time of the budget.

Pankaj
 
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I think the calculation of excise is not as simple like 6 % of 10 lakhs = 60K. The excise duty is calculated on factory out price. Then Dealer Margin, VAT added to it.

(((Factory Price + Excise Duty) + Transportation ) + Dealer margin+) + VAT = Ex-Showroom Price

So, benefit is not straightforward 60,000 for 10 Lakh car. It would be lesser than this.

Please correct this, if wrong.

Pankaj
 
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The catch with Maruti is that they have some scheme or the other running all times.Now lets say 15K discount is running on Wagon R.The SE will say "Sir ,No discount as we have reduced the price of the car " .Here the ambiguity will be present for next 5-10 days.By this time the dealer will not give the discount with the reduction and the profit is made by them .
Watch closely.
Actually all the dealers do play this game.
The manufacturer may even discount the ED on current stock (unbilled),but this is not known to the customer.

[clown]
 
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Well I did not face this in 2008. The discount was already bargained and then there was price cut. I got benefit of both. It was Maruti Suzuki only. Discounts are given by Maruti directly and dealers have no role in that.

Here are expected price cuts of diff cars - Source TOI
 

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Good decision by FM.I think it will change the fortune of the automobile industry.
This is nothing but playing politics keeping elections in mind. I bet once the new government is sworn in, the prices will be jacked up under the pretext of higher raw material costs. Simple strategy. say the govt is keen on hiking the price of petrol by 3 Rs. It will first hike by say 7 Rs , invite protests from all corners and then slash the price by 4 Rs thereby fooling the public.
 
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But the bigger question is will the manufacturers pass on the benefit?Ford won't pass the benefit in case of Ecosport I guess.So will the fast selling models from other makers.
Some companies have already announced the cut but this still remains in hands of manufacturers if to pass on the benefits to the consumers. In case of Ford Ecosport where in price were just revised in Jan, i dont think any price cut is expected, not aware of any govt policy related to this being essential to pass on the benefit to end user [confused]
 
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Some companies have already announced the cut but this still remains in hands of manufacturers if to pass on the benefits to the consumers. In case of Ford Ecosport where in price were just revised in Jan, i dont think any price cut is expected, not aware of any govt policy related to this being essential to pass on the benefit to end user [confused]
Hi Playing_cars,
That's why I maintain my stand that Ford is an unethical company.But still there are some who will jump on to defend Ford if they don't pass on the benefits.
Regards,
Aneesh.
 

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