The 2010 Union budget is not very exciting for future car and bike buyers. Nor is it any good news for current car or bike owners. The Government has increased the excise duty by 2%, translating into small cars attracting 10% excise duty and bigger cars will now have to pay excise duty at 22%. Fuels have not been spared either with Rs. 1 per liter excise duty being levied on Petrol and Diesel amounting to a price hike of Rs 2.67 a liter on petrol and Rs 2.58 per liter for diesel.
Other than the direct hit by excise duty on automobiles, there is an indirect hit too in the form of excise duty on steel which will be hiked as well resulting in vehicles becoming expensive to manufacture and thus costlier to buy. Some car manufacturers have already declared price hikes. However electric cars see a reduction in excise by 4% to 4%. The electric vehicles also get exemption from custom duty and other special duties on the components used. Excise duty has been waived off on solar panels and we can now see more solar powered rickshaws. Road development fund allocation has been increased to Rs 19,894 crore but as usual our roads will continue to remain in a terrible state.
.JPG "2010 BMW 7-Series")
.jpg "Supercar Garage")
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February 26th, 2010 at 7:39 pm
thats so disgusting, wats in favour of the auto industry, again a recession for the indian auto industry,how will ever they produce green or hybrid cars,if the excise duties or not cut , wen we will able to buy the giant suvs,which are dearer, how can the manufacturer will be able to produce green cars, we must wage a war against the govt and bring into notice, that help manufacturers to produce green cars like hybrids, all auto journolists must make a team and bring out the issues to the govt and make them aware to see that INDIAN AUTO INDUSTRY IS THE GLOBAL HUB FOR all the companies and see that there are stict norms of introducing or encouraging the companies to produce morehybrid cars or green cars and gain the number one spot.and pave the way for the companies as well as the consumers for the smooth flow,not by increasing the prices of raw materials and i dont mind paying extra 2 rupee for the petrol or diesel? will we drive an hybrid ever in INDIA,AND HOW CAN WE PREVENT THE GLOBAL WARMING?
February 26th, 2010 at 8:25 pm
HI,
I hav a question?
IF the price of new veichles increase does that mean the price of second hand veichles will increase aslo?
February 26th, 2010 at 8:26 pm
Avinash, no price of 2nd hand vehicles will not increase.
But a rare possibility is that demand for new vehicles may fall and demand for 2nd hand vehicles increase leading to people demanding more for their cars in the used car market.
February 26th, 2010 at 9:12 pm
used vehicle rate are based upon the benchmark of current price of the same model on road, some times even conflict arise whem manufacturer drops price considerable amount , at that time seller bench mark his purchase price but market give only price according to current on road price.
March 2nd, 2010 at 6:14 pm
When will the rise come in effect?
March 3rd, 2010 at 7:40 pm
Anusha, its already in effect.
March 6th, 2010 at 12:30 pm
hi,
after the union budget 2010 how much price increased for the hero honda vehicles ..
can u tell..
March 7th, 2010 at 2:04 am
Chazy, 2% increase.