Two wheeler prices may go North

In a show of insufficient support to India’s flourishing private sector, the Government Of India’s Union Budget 2012–13 proposes hiking two wheeler excise duty from ten to twelve percent; an inexplicable move that can only trigger price hikes across the industry, as two wheeler manufacturers are left little choice but to pass their increased cost burden on to buyers.

The government has meanwhile also failed to provide relief to what are already sky high import duties levied on imported motorcycles brought in as completely built units (CBU), semi knocked down (SKD) &ncompletely knocked down units (CKD), unreasonably choosing to keep duty unaltered for these products, with 60 percent duty absorbed by the Government on every CBU model, &n30 percent for all CKD bikes.

Excise duty hikes to make all cars more costly

Prices of cars are set to increase by a minimum of Rs 6000 for a car like the Maruti Suzuki Alto K10 to Rs 2 lakh for the Mercedes C class as a result of budget proposals for a hike in excise duties.

With standard excise duties being hiked from 10 percent to 12 percent, there will be an increase in prices across all cars including small cars that have benefited from lower duties & made India a manufacturing hub for compacts. For car longer than four metres, & with an engine capacity of 1500 cc for diesel & 1200cc for petrol, the excise duty proposed is now 24 percent as against 22 percent earlier. For cars with engine capacities more than 2000cc, the excise duty levy that will apply is now 27 percent as against 22 percent & Rs 15,000.

The budget has also proposed that custom duties on large cars, MUVs & SUVs that are bought in as completely built units & whose value is over $40,000 will attract a duty of 75 percent as against 60 percent earlier. This will impact cars like the Maruti Kizashi as well as luxury car models such as BMW X5, X6, 7 Series, Mercedes SUVs, Volvo cars, Honda CR V, Nissan X trail & Toyota Camry.

Lowell Paddock, president & managing director, GM India said the excise duty increase from 10 to 12 percent is a disappointment. “Since the bulk of our sales are in the small car segment, we will have to analyse their pricing    I don’t think we have a choice when it comes to passing the price increase to the customer.”

Ducati has unveiled the Monster Diesel.

Italian bike manufacturer Ducati has unveiled a restyled Monster 1100EVO called the Monster Diesel. The Monster Diesel gets a coat of army green paint in matte finish with black treatment for its prominent trellis frame, exhausts, wheels & front forks, while the front brake calipers are now yellow. Ducati has also launched a collection of slim fitting biker jackets, various apparel & accessories. The Monster Diesel will be available at Ducati stores globally from this July.