After a long time of falling car sales and dropping economy, Indian car manufacturers are rejoicing the reduction in excise duty announced by the government. But, the industry’s fortune may again start dwindling.
States like Delhi, Himachal Pradesh, Punjab, and Rajasthan are expected to increase their local-level taxes which would definitely bring down the benefits of the lower excise rates. These states are following the trend started by Andhra Pradesh, Gujarat, Kerala, Maharashra, Tamil Nadu, and Karnataka. The latter have already increased their state taxes and the former are in the process to levy new local taxes. This would unfortunately increase the car prices.
Car consumers who were celebrating the cut in car prices just a few days back are now feeling the pinch. The pinch is even harder and painful because the state taxes are to be levied on the ex-showroom price of the car models. If it was on the ex-factory prices, these customers may have still enjoyed the benefits of excise cut.
Now, it has become difficult to say whether the car market will bloom this December or not. Potential consumers have also felt a harder pinch because the price cut announced in response to the excise cut was lower than the price increased due to the higher state taxes.
December may still prove to be a prosperous month for the car market because the increased taxes are still to be announced. Maybe, till then, potential car buyers can make up their minds to decide on their choice. Customers may take advantage of the reduced car prices now and make quick bookings. But that’s only for a short period.
But then the increased price tags would only be in selected sates? This wont affect all the car consumers. Only those living in the specified states would get be affected by this.
Happiness.. short lived. The excise cut on auto mobile industry had given a new life to Indian auro industry. But now the decision of some states to incease their local tax have been a hard hit on the customers and on the car manufacturers, who will have to increase their price tag.. Atlest somebody will be happy.!!
As it they were to get costlier. Till what I know both Maruti and Honda have decided to raise the prices of their car models this January. So, the excise cut is only a short time benefit we people can enjoy.
The car makers are offering attrctive discounts now and buyers are rushing for their purshace.Many will be waiting for the new year to make their purchace but if the car makers are planning to increase the price, then this will further disappoint the buyuer.Hope car manufacturers will think of some solution.
Yes, even I heard that most of the car manufacturers are planning to increase their car prices because of the increased cost of production. Some even say that the decision to raise car prices is mainly because of the weakening of the Indian Rupee against the dollar value. Whatever the case be the sufferers are the Indian car consumers.
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