Effect of Union Budget 2013 - 2014 on Indian Auto Sector

[Gurrala74]

Dear Friends,

Since the budget session 2013-14 is going on right now, I felt it is important to discuss its effect on the Auto sector which also in turn effects the buying decisions of the members and visitors.

So, all are welcome to contribute the Auto related budget highlights and we could discuss the effects of it on various range of vehicles and other related accessories and fuels too

The first one is

Increase of excise duty on SUVs(non Taxi) from 27% to 30%

 

[rohit0103]

Re: Discussion on 2013-14 budget effects on Auto Sector !!

Will it impact Ertiga prices ? How does the Govt define SUV ??

 

[ASIR]

Re: Union Budget 2013-14 - Effect On Indian Auto Sector

Completely Built units will feel the heat from the Budget it seems

 

[vijay]

Re: Union Budget 2013-14 - Its Effect On Indian Auto Sector

To encourage manufacture of environment-friendly vehicles, I propose to extend the period of concession now available for specified parts of electric and hybrid vehicles upto 31.3.2015.
One of the reference from his speech.
Just heard Pawan Goenka of M&M, criteria of SUV for excies duty of 30% is 170 mm ground clearance! So all suv/muvs will be in this category, except may be sub 4 meter ones, or there will be a new category created in India, sub 4 m compact suv like vehicles with sub 170 mm GC!
And another reference:
imposed 100 pc tax on high-end vehicles, 60 pc on imported bikes above 800 cc, 25 pc tax on yachts

 

[pradeephk]

Re: Union Budget 2013-14 - Its Effect On Indian Auto Sector

Just heard Pawan Goenka of M&M, criteria of SUV for excies duty of 30% is 170 mm ground clearance!

Any amount of ground clearance is not sufficient on our roads. And if this happens to be the criteria, then i guess there would be some hatchbacks too falling under this category. Hope this turns out false.

 

[Gurrala74]

Hhahahaha, funny situation, we really need to see what exactly meant by SUV in Mr.Chidambaram's terms

Any way it may be a bad news for XUV/Storme buyers

 

[rohit0103]

Ref to attached. this is the existing excise duty
http://www.siamindia.com/Upload/EXCISE2012.pdf

We know excise duty raised from 27 to 30%.
In attached, there is only 1 item which has excise duty as 27%.

8702, 8703
(ii) Motor vehicles of engine capacity exceeding 1500 cc;

Also, below mentioned is summary of excise increase from 2012 Budget .

http://www.rediff.com/business/repo...-on-cars-increased-by-2-per-cent/20120317.htm

Ref : Increase in excise duty from 22 per cent + Rs 15000 to 27 per cent on large cars over 4000 mm length with engine capacity exceeding 1500 cc for petrol cars and 1500 cc for diesel cars.

So, my guess, lets not take SUV as its literal meaning, but as per law, it would be any private passenger vehicle with engine capacity more 1500, irrespective of number of seats, build, Ground clearance.

 

[Surfer]

We can expect a price hike of 15k to 30k on SUV's.
Now companies will give offer to get pre price hike cars



Shares in Mahindra & Mahindra , India's biggest utility vehicle manufacturer, fell as much as 1.4 percent on Thursday after the country's finance minister proposed increasing excise duty on sports utility vehicles (SUVs).

Shares in Tata Motors, another big SUV player, fell as much as 0.8 percent after P. Chidambaram proposed in the country's budget for the upcoming financial year that the duty would increase to 30 percent from 27 percent.

http://timesofindia.indiatimes.com/...V-duty-hike-proposal/articleshow/18727104.cms

 

[anshuman8]

I guess the price rise will be effect for April 13 , so manufacturers/dealers will be giving offers on pre- budget price on SUVs until such time.

Also the new small car buyers can have respite that excise duties for that category remains same.

 

[dharmesh]

Did is read 170mm GC for SUV??
So according to this new budget my Hatch will get converted to SUV.
FYI.. Punto 2012 have 195 mm GC.

Source : http://www.fiat-india.com/2013/punto/

 

[ashikawa]

Conditions for a vehicle to be classified as SUV is :
1. It should have a CC of 1500 and more.
2. Should have a length of exceeding 4000mm
3. Should have a ground clearance of 170 mm and above.

See the attached image of original notification of budget.

 

[D.J.D.]

Hi all this is the first post from a newbie . I am really concerned about ertiga as i am planning to buy one in this year (may be mid '13). Ertiga is more than 4 M length, GC is 185mm but engine is only 1.3 L. whether it will be considered as a large SUV . Can anyone please clarify

 

[rohit0103]

So, for Ertiga,

1. It should have a CC of 1500 and more.- NO
2. Should have a length of exceeding 4000mm- YES
3. Should have a ground clearance of 170 mm and above.-YES

this will not be applicable ?

 

[visran]

The worst hit will be JLR & Volvo as they have the maximum numbers of CBU's

 

[visran]

FM allocates Rs 14,883 crore for JNNURM in next fiscal year

Union Finance Minister P Chidambaram on Thursday provided a major boost to the struggling commercial vehicle sector by allocating Rs 14,883 crore for the Jawaharlal Nehru National Urban Renewal Mission ( JNNURM) in the budget 2013-14.

Presenting the union budget for the next fiscal in parliament, Chidambaram said he has provided Rs 14,883 crore to purchase around 10,000 buses under the city modernisation scheme.

Budget 2013: FM allocates Rs 14,883 crore for JNNURM in next fiscal year - The Economic Times