Discussion in 'Fiat India News' started by mightymaveryk, Feb 28, 2013.
I'm getting tired of this country. Luxury is getting farther and farther away every year.
That is what. If it is already taxed based on the length, this extra taxing only on SUVs may not make sense. If it is based on FE, the decision is partial.
I didn't see any much awaited update on Diesel cars. Are they priced they unlike MY2011-12 or they have increased the prices of diesel cars in MY2012-13?
I agree. The news must have hit FIAT badly. JEEP's will definitely be expensive.
Considering JEEP is a high margin product for FIAT-Chrysler the management in Turin (and Shanghai) won't allow Fiat India to sell the product at a low margin. Net-Net : challenge for FIAT.
I also see the Abarth plans taking a hit. Fiat was planning to bring a few initial models through the CBU route. Those plans are most probably out of the window now.
The tax on SUV's is stupid. SUV's occupying more space on roads is NOT the problem. The government not building roads IS the problem. If occupying space was the criteria for penalizing cars : first penalize all the ministers who travel in convoy of 25+ cars. They occupy much more space than a SUV !!
Taxing vehicles according to length makes sense (if using for private purposes). What is wrong - taxing only SUVs now, even though such taxing model is already there. If the FM's argument is only that it occupies more space, we can't agree to it.
What I seen through the budget is that instead of strengthening the base in any sector, the government just tries to cover up for the votes. What happens when the budget is implemented is the users who already booked by March and getting delivery in/after April will be hit with new price as the manufacturers will be selling at new price rather than the price at March or they will increase the price by March itself to avoid the future loss. This will hit the automobile sector in big way with sliding sales.
JEEP is going to be launched as a CBU so what we should we worried about is the tax on import vehicles going upto 100% from 75% because that's what's going to apply to JEEP. I am sure this regulation has sent JEEP's pricing mechanism in a tizzy. But, I support this move as it's meant to force manufacturer's into setting up manufacturing in India rather then take the easy way out of importing. What I am confused over is how will this impact India's agreement with EU where products imported from Europe were to have a different and better tax rates.
Of course, the SUV excise will also have an impact on Fiat as it plan's to launch smaller SUV's eventually. As per the government, SUV is a vehicle that is:
- more then 4 meters in length.
- Has an engine higher then 1500 cc
- Has ground clearance higher then 170mm.
What the government has done is classified the Maruti SX4 as a SUV while the Ecosport has escaped!
This stupid regulation is only resulting in cramped pseudo SUV's with lethargic engine's.
Same story goes for car's that have lower excise if they are less then 4m in length & have petrol engines upto 1.2L and diesel's unto 1.5L.
Excise and any other taxes on car's should be based on their emission's and not on these random, idiotic rules. Why not give tax break's to car maker's whose plants leave a lesser carbon foot print?
I am also disappointed with the absolute lack of encouragement given to hybrid's and electric car's. At least they could have exempted the Prius from 100% custom duty. The government should start creating the infrastructure for charging of electric car's now so that we are not caught red faced 15 years from now when people will have to line up for hour's waiting to charge their car's. Why can't they learn from the CNG story already unfolding on almost every street corner as we speak?!
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