[nik hill]

http://economictimes.indiatimes.com/...w/31194081.cms
A link to the ET article on some companies not passing excise benefit in full to customer.

[Sanjubose]

Originally Posted by ddis_dude

Don't see any updates on their website for the Yeti? Did you stop by at a showroom and get the updated price list? Would you know the difference for a Yeti?

ddis_dude, I have gone ahead with a black Jetta CL. Am not able to reply to your mail as your mail id is not incorrect and I donot have permission to ping you. Correct your email id in TBHP and then send me a mail.

[Turbanator]

very informative article at ACI -

http://www.autocarindia.com/auto-new...-374216.aspx/0

[SumitB]

If Shereen Bhaan is good at her work and what she is reporting is correct then we may be headed for good times ahead. I am looking forward to get 3 vehicles soon

[Aditya]

With the period of the excise duty cut on vehicles about to expire, manufacturers could raise the prices of cars and bikes from July 2014.

Link to Team-BHP News Article

[aditto]

Honda dealers in Hyderabad (Pride and Green, both) confirmed that Honda car prices will be increased from July 1st since the reduced excise duty will not be applicable. Expect car prices to go up around 4%.

To avoid this, people who have booked their cars in May/June and expecting delivery in July or later are advised to make the full payment by June 30th. This is what we are doing as our Honda City delivery date is 3rd July. Making the full payment by 30th June will ensure discounted excise duty applicable.

[anilntny]

Originally Posted by aditto

Honda dealers in Hyderabad (Pride and Green, both) confirmed that Honda car prices will be increased from July 1st since the reduced excise duty will not be applicable. Expect car prices to go up around 4%.

To avoid this, people who have booked their cars in May/June and expecting delivery in July or later are advised to make the full payment by June 30th. This is what we are doing as our Honda City delivery date is 3rd July. Making the full payment by 30th June will ensure discounted excise duty applicable.

I think this will be just temporary .

Society of Indian Automobile Manufacturers (SIAM) has held discussions with the ministers of the newly formed Government ,so I expect to see either continuation of present rates or even more reduction in excise duties to promote auto industry.

[aditto]

Originally Posted by anilntny

I think this will be just temporary .

Society of Indian Automobile Manufacturers (SIAM) has held discussions with the ministers of the newly formed Government ,so I expect to see either continuation of present rates or even more reduction in excise duties to promote auto industry.

Yep it is quite likely to continue but there may be a few days that will lapse before the rate is set again.

[abhishek46]

Originally Posted by Turbanator

very informative article at ACI -

http://www.autocarindia.com/auto-new...-374216.aspx/0

This is indeed an eye opener article posted by turbanator.

When excise duty is increased, car manufacters immediately increase their prices.

When it is reduced back again, they (Honda, GM, VW, skoda) do not fully pass on the benefit to the customer by citing rising input costs.

[sdp1975]

Originally Posted by aditto

To avoid this, people who have booked their cars in May/June and expecting delivery in July or later are advised to make the full payment by June 30th. This is what we are doing as our Honda City delivery date is 3rd July. Making the full payment by 30th June will ensure discounted excise duty applicable.

I don't understand this logic.

Excise duty applies to a vehicle that has been manufactured at the factory gate, so for a car already built/manufactured before June 30 , the older excise rate should apply and the actual delivery date should not matter.

[aditto]

Originally Posted by sdp1975

I don't understand this logic.

Excise duty applies to a vehicle that has been manufactured at the factory gate, so for a car already built/manufactured before June 30 , the older excise rate should apply and the actual delivery date should not matter.

I agree it is an ambiguous logic crapped on us by the dealer. However since we were anyway going to buy it within a few weeks, we went ahead.

[dass]

Originally Posted by sdp1975

I don't understand this logic.

Excise duty applies to a vehicle that has been manufactured at the factory gate, so for a car already built/manufactured before June 30 , the older excise rate should apply and the actual delivery date should not matter.

The point to consider here is the word 'should', but it normally isn't.

Do you realistically think that the dealers would not hesitate to make a quick buck by passing on the May manufactured car in July as a post budget car? I mean, how many people out there buying cars really understand this logic?

[blacksport]

Originally Posted by sdp1975

I don't understand this logic.

Excise duty applies to a vehicle that has been manufactured at the factory gate, so for a car already built/manufactured before June 30 , the older excise rate should apply and the actual delivery date should not matter.

That is an interesting thought, but I don't think that is correct. What happened when there was an excise duty cut? Did they sell all the cars manufactured before the duty cut at the previously high prices? Would anyone buy them when you can get newly manufactured ones at a lesser price?

[sdp1975]

Originally Posted by blacksport

What happened when there was an excise duty cut? Did they sell all the cars manufactured before the duty cut at the previously high prices? Would anyone buy them when you can get newly manufactured ones at a lesser price?

During the excise cut in Feb 2014, manufacturers took the duty cut(loss) in their books as end customers obviously would not purchase these cars that were manufactured at a higher duty.

http://articles.economictimes.indiat...-auto-industry

Manufacturers have always borne the loss even in previous instances whenever there's an excise cut.

[vivekz]

Good News !!

Finance Minister just announced that excise duty cut on cars to extend for another 6 months.

Hope it helps the industry to get back on its feet.