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Budget 2013-14 Impact on Petrol and Diesel Passenger Car Prices

Budget 2013-14 Impact on Petrol and Diesel Passenger Car Prices

With Budget 2013 - 14 round the corner, lets identify the probability of hike in Excise Duty and New Diesel Tax Impact on Car Prices and Sales in India


Modified on 28th Feb 2013


Budget 2013 - 14 Impact on Passenger Cars

- Excise Duty : Present Excise Duty structure on passenger cars is unchanged except SUV Cars :-

Cars with Length Less than 4 Meter - Excise is 12%

Cars with Length > 4 Meter - Excise is 24%

Cars with Engine Capacity > 1.5 Lit - Excise is 27%

There is no separate fuel tax classification like taxes on diesel cars at present. The Automotive Industry wis demanding 2% excise rebate on small cars to bring it at 10% and making uniform all other at 22% classifying as big cars


Are Cars going to get Expensive post Budget

Budget Outcome :

> No surcharge on Diesel Cars.

> No Change in Excise Duty on Hatchback and Sedan Cars

However, the impacted segment will be SUV Cars - The Excise Duty to Increase on SUV Segment from 27% to 30% giving cars like - Scorpio, XUV 500 a price hike from Rs. 20,000 to Rs. 40,000. On SUV Cars like Rexton, Fortuner, Audi Q3, BMW X1 the hike could be from 50,000 to Rs. 75,000

Note - There should not be any impact on pricing of Duster (as less than 1.5 Lit) and Quanto (less than 4 Meter)

- The Import Duty to increase on Imported Cars from 75% to 100% giving price hike on Audi, BMW, Mercedes Benz Cars

- Mr. Chidambram announced for SUV, SUV is a new classification in which :-

Length > 4 Meter with Engine Capacity > 1.5 Litre and Ground Clearance >= 170 mm

It will further lead to price hike of some of Executive sedan in C+ Segment like with price hike of Rs. 30,000 - 50,000 and couple of Mid Sedan Cars wherein price hike will be in range of Rs. 20,000 - Rs. 25,000

Click Here to get complete list of Models with Expected Price Hike

 

Complete Coverage of Budget 2013 with Key Points and Highlights

Click Here to explpre the budget analysis with impact on Prices, Exemption Limits

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