BonFre

Budget 2013: Impact on Automobile Sector

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There seems to be some ambiguity in the statement, it also says "This hike however, will not be applicable to those SUVs that have been registered as taxis".

So does this bring MUVs/UVs also under this group as most taxis are UVs and very little SUVs?

Also, i think it says this does not impact SUVs brought via CKD/CBU, is that true?

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Earlier their was just talk about Diesel SUVs facing the FMs music , but he was more LIBERAL he imposed the excise like across the board.

The import duty increase is also sad, earlier there were indications that this would be brought down significantly.

All in all to early to jump to conclusion as to how the budget fared, give it a few days , let the analysts disect it completely.

At first impressions nothing that suggest that any kind of prices will be coming down soon.

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Guy's what does this mean for me i had planed to buy my car on the third of april will now it will be more expensive should i buy it in march ?

When will this increase come into play ? Will it be applicable from april

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Budget implications are always for the coming Financial Year not the current one , so everything is applicable post 1/4/2013

In a nutshell:

Post Budget Impact on Car Prices in India

No Change in Excise on Hatch / Sedan Car Prices

SUV Cars will be priced higher effective April 2013

CBU - Imported Cars will be priced higher

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True but Excise hike becomes effective immediately from the midnight of budget announcement. However it will not be applicable on cars billed from the factory before the midnight of 28th.

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SUV always remained on govt's radar for being a precious resource guzzler, be it a road premix or road space or precious & subsidized diesel fuel. So scalpel-job was due on them & now finally they got their identity with special taxation policy.

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Well the definition of FM's SUV is confusing too. He said, a car is SUV if any of the three matches

  1. length of > 4 Mtr
  2. CC >=1500 and
  3. GC>170 MM

Now, looking at these params, even SX4 is an SUV :D Lol

Edited by Sstar

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length of > 4 Mtr CC >=1500 and GC>170 MM

By those "lopsided" standards some Sedans & most UV's shall be affected.

Im actually not against taxing certain class of vehicles, what bothers is the poor definitions. Even the 4m clause for small cars was ill-conceived. Govt. thinktank it seems is redundant/not in sync with times/ground realities.

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Im actually not against taxing certain class of vehicles, what bothers is the poor definitions. Even the 4m clause for small cars was ill-conceived. Govt. thinktank it seems is redundant/not in sync with times/ground realities.

Even i too, but the kind of definition they are using in the broadest forum like Parliament....it is shame that our Ministers do not even know what are the characteristics of an SUV?

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I read an article recently which says that the government has given special concessions to the European market. This means that the import duty for cars imported from Europe (Mercedes, BMW, Audi etc) will be reduced significantly. A Mercedes GL class can be had for approx. 55 lacs comparing the existing price of approx. 85 lacs. This will be a huge bonus for these car companies. Expect to see more of the European brands on our roads.

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