Buying a new car was more of a headache in the recent past. The government announced higher excise duty costs for cars exceeding a particular length which meant that most SUV’s and premium sedans fell into this category. Alongside, car prices increased in general owing to global economic slowdown and increases in prices of components. However, good news is in store for prospective car buyers as the 2014 budget will see a revision in car prices.
Cars are going to be substantially cheaper in times to come with an announcement by P. Chidambaram, the finance minister with regard to imposition of a lower excise duty on cars in the budget for 2014. This budget will only be an interim one though as this government will soon conclude its term in power. The revised prices will be in effect only till June this year as a result. If you are looking to take advantage of lowered car prices, you should not delay your car purchase by any means!
The Revised Excise Duty slab for cars
|Vehicle Category||Excise Duty previously||New excise duty|
Car maker Chevrolet has already announced a price revision on all its car models within INR 12, 000 to INR 49, 000. The Chevrolet Beat now starts at INR 3.92 lakhs while the Spark starts at INR 3.49 lakhs. The Sail U-VA will be cheaper by almost INR 15, 000 to 23, 000 while the sedan model will be cheaper by almost INR 16, 000 to 24, 000 with an INR 28, 000 price cut for the petrol version of the Enjoy. The diesel version of the same will be cheaper by INR 40, 000 and the Cruze will cost INR 49, 000 less. Maruti Suzuki has announced price cuts ranging between INR 8, 000 to INR 31, 000. The Celerio will be cheaper by INR 14, 000 while the AMT version will start from a little above INR 4 lakhs.
The Swift will start at INR 4.42 lakhs for the base version in petrol and go up to INR 6.7 lakhs for the top diesel model. The Alto 800 will now have prices between INR 2.42 lakhs and INR 3.52 lakhs while the Wagon R will start at INR 3.52 lakhs with the Stingray coming for INR 4.04 lakhs. The Ertiga MPV will start at INR 5.80 lakhs while the Dzire will cost INR 4.85 lakhs. The SX4 will start at INR 7.15 lakhs. The Honda Brio will start at INR 3.99 lakhs with the top version coming for INR 6 lakhs almost. The Honda Amaze petrol version starts at INR 4.99 lakhs while the diesel model starts at INR 5.97 lakhs.
The Honda City will start from INR 7.19 lakhs and the all new CRV will witness price cuts of almost INR 45, 000. Mahindra will have price cuts between INR 13, 000 to INR 49, 000 for its models including the XUV500 and Verito Vibe. The flagship SsangYong Rexton model will be cheaper by a whopping INR 92, 000.
On the other hand, Hyundai Motors has scaled down prices by INR 10, 000 for the Hyundai Eon and up to INR 1.35 lakhs for the flagship premier SUV the Santa Fe. This car was launched recently and there should be a rapid influx of customers owing to the recent price cuts. Volkswagen will be substantially cheaper within INR 18, 000 to INR 51, 000 for all models including the Polo, Jetta and Vento. Nissan has also reduced prices by almost four to six percent on its models and has passed on price benefits totally to its customer base. Prices will be slashed by almost INR 13, 000 to INR 49, 000 across its total portfolio. Nissan will benefit due to reduced prices of the EcoSport and Terrano. The Nissan Micra Active was reasonably priced already and the car will be an even more attractive proposition for customers.
Audi India will slash prices on all cars that are assembled locally. These include the Audi Q5, A4 and the Q7 SUV. Prices will be reduced by INR 72, 000 to INR 3.82 lakhs based on the specific model in question. Mercedes Benz is not far behind when it comes to price cuts as well. All models will be cheaper between INR 55, 000 to INR 2 lakhs including models that are produced in India such as the GL class and C and E class models. The S Class will also be cheaper in the Indian market. All prices mentioned here are based on ex-showroom Delhi statistics and figures. The final prices will vary from state to state depending on the particular state taxes and other charges levied by governments.
All in all, this is indeed the best time to snap up a great car that you have always been eyeing. The revised car prices will only be in effect for the next few months. You should book your car immediately to get the immediate benefits of the price cut across companies and models. SUV buyers will be relieved as the high taxes on SUVs made them significantly costlier earlier. Hatchbacks and sub 4 meter compact sedans will be even cheaper, which will be welcomed by buyers in this sedan. Prospective luxury car buyers will also feel a lighter load on their pockets thanks to the high price cuts implemented by major car makers in this segment like Mercedes and Audi.
The revised excise duty announcement will be welcomed by the automobile industry as it will naturally lead to substantially higher sales. This announcement comes at a time when the automobile industry has been reeling under its worst ever period in terms of sales and customer demand. The months of December and January have been the hardest in this regard. With the 2014 Delhi Auto Expo and the price cuts, the industry is hoping for a smooth and quick revival to come!