Indian government increases car taxes
The Indian government has just introduced an additional tax for cars, MPVs and SUVs with engine displacements from 1,500cc and above, a segment that sees nearly 400,000 vehicles sold annually.
Cars with engine displacements between 1,500cc and 1,999cc will be taxes an additional Rs 15,000 (roughly RM1,125), and cars with engine displacements above 2,000cc will be taxed an additional Rs 20,000 (about RM1,498).
“This hike was unforseen and unexpected. It will have an impact on demand and we will have to revisit our production forecasts and margins, which are already under pressure. There is nothing to suggest that just because a car has a bigger engine, it will consume more fuel,” said Ankush Arora, vice president (marketing and sales) at GM India.
Of the three Proton cars that the Economic Times reported will see an Indian market launch sometime next year, only the Proton Persona with a 1.6 liter engine will be affected by this increase in tax, as the other two cars are 1.3 liters and below.
June 17, 2008 @ 5:35 pm
the want to protect their national car?
June 17, 2008 @ 6:57 pm
India just launced their own Tata Nano, now they wanna increase tax on big capacity engine? Obviously they are playing safe as to protect themselves on the small car segment.
Just like our goverment, doing the same trick just that they want to earn more.
June 17, 2008 @ 8:48 pm
yes, I think they are protecting their market. They allow people to get a car, but middle class will have to pay more.
June 17, 2008 @ 11:44 pm
so will india be like malaysia?
will they suck the citizen’s money to spend for their own entertainment?
sponsored overseas trip? big cc premium automobiles? free ap for every MP?
history repeats itself.
June 18, 2008 @ 6:40 am
Indian G just tax about RM1,500? Wow. How about ours. I think the main thing is it is purely environmental aspect to increase the tax. Reducing car in India actually. The same goes in brunei where petrol is RM1.22 to reduce consumption and wastage.
June 18, 2008 @ 8:36 am
There is no difference when Malaysia did drop the road tax for cars 1600cc and below.
Help citizens? right….dream on. Its to spur demand for our local cars, proton and perodua especially. Too bad, everyone ended buying Citys and Vioses…..
You have to ask …why 1600cc and below, and not 1500cc and below? Right. If it was 1500cc and below, it youd have killed proton. LOL.
June 18, 2008 @ 3:27 pm
“dream on. Its to spur demand for our local cars, proton and perodua especially. Too bad, everyone ended buying Citys and Vioses”
the fact is, local cars still make up the bulk of vehicles in the below 1.6 category. although demand for the city and vios are high. perodua and protons in that segment still outsell them by a large margin. price of course makes the difference.
“Right. If it was 1500cc and below, it youd have killed proton. LOL.”
the saga is currently proton’s top seller, so even if taxes increased for cars above 1500cc, it would still not affect them much. Besides that, with a premium of about RM30,000 over a persona for the city and vios as an example, higher road tax alone probably isn’t going to make someone who only has a budget for RM55,000 to suddenly decide to jump up and go buy a RM80,000 car right?
June 18, 2008 @ 4:39 pm
I wonder how much the price for proton cars in India!
Is it much more there or much LESS as priced in UK?
June 19, 2008 @ 12:41 pm
msmar_453, i was curious and decided to go checkout proton uk prices..
the topspec persona AT is priced at GBP 11,595 on the road.. which translates roughly to RM73,500.
in Malaysia, RM56,350
Topspec Gen2 in UK = RM75,000
In Malaysia, Topspec gen2 AT CPS is priced OTR RM60,488
topspec Savvy AMT = RM50,000.
in malaysia, RM45,841
seems like they cost a lot more in the UK, than in Malaysia.