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**insane79** · 03-01-2011, 03:45 PM

Originally posted by rx100.7050 View Post

Well, incentive is to set up full fledged manufacturing plant in India (boosting ancillary Industries too) & create jobs & help the India economy

Yes thats right, like what VW did in india, the govt wants more of that which i agree to a certain extent..

**j4zb4** · 03-01-2011, 03:55 PM

Originally posted by MACH50 View Post

CBUs would cost as usual, only CKDs would cost as much as the CBUs.

Previously, the CKD used to cost less as the vehicle was assembled with imported critical parts here in India.

But now even the imported critical parts to be assembled would also be considered for 60% import duty instead of 10%.

Which means that all the Hayabusa,VFR,Vmax,Bandit,MT1,R1,Fireblade,GSX100R and every CBU on sale would remain unchanged in costs.

But the vehicles with imported engines,gearbox and chassis that are being assembled here would see price hike.

@j4zb4: isnt baby Ninja a CBU ???

nope its a ckd...

**Puneet1** · 03-01-2011, 03:58 PM

now what will happen to the prices of ckd harleys , hyosungs , ninja 250

. more convenient now to just get cbu s instead of thinking of ckd assemblies . wrong move by the govt imo

**Ghost11** · 03-01-2011, 03:59 PM

Originally posted by anshuljain View Post

I am sure that there is a mistake somewhere, and a clarification will come in due course of time. Otherwise there will not be any incentive for any co. to go for the ckd route and result a big loss for the Indian industry and consumers alike.

AFAIK no mention of any kind of hike in any major duty was talked about in the budget,infact i am absolutely certain that the central excise duties have been kept untouched.If there was a hike like this, the auto sector would have been on the negative side on the stocks today but it has shown an almost 3% surge today.

The only thing that they talked about in the budget dealing directly with the auto sector was for the incentives for companies producing hybrid vehicles in India.

Yahoo

http://in.specials.yahoo.com/budget2011/news-detail/post/news/265/auto-positive-a%80%93-directly-and-indirectly.html

Access Denied

http://www.business-standard.com/india/news/auto-index-surges-as-excise-duty-unchanged/127393/on

**MACH50** · 03-01-2011, 04:55 PM

Originally posted by rx100.7050 View Post

Well, incentive is to set up full fledged manufacturing plant in India (boosting ancillary Industries too) & create jobs & help the India economy

I fear compromise in quality then.............I trade and live in this economy.Too many adjustments are made by too many middlemen for a single deal.

Originally posted by j4zb4 View Post

nope its a ckd...

In that case, Ninja 250R is priced ridiculously high...........how can some people buy it ??? !!! So long someone respect their own hard earned money then they would buy wise and a product well justified.

I thought that Ninja costs that hefty premium because it suffers import duty like a CBU !!!

**enfro** · 03-01-2011, 05:12 PM

Originally posted by jamalkhan View Post

Any idea what would be the price of Ninja 250R?

If Baj-Kaw keep assambling them then it may be over 3.5L-3.75 ex-show. Just an estimate.

Originally posted by rx100.7050 View Post

Bad news for Ninja. This may force Bajaj - Kawa to re-think about the strategy. Is Honda CBR 250's price also going to affected as I guess it's also following CKD option ? Is HD suppose to set up their factory in Haryana for 883 or for some other models too, any idea guys?

CBR250R would not come through CKD route. I will be manufactured in India itself.
HD- Initially the factory was to be setup for 883 only (i think 2 variants in it). Now they have not given any details about manufacturing. So no news whether its only for 883 or other models also. But to see it with common sense, they would like to set up a facility which manufactures other models too because they intend to export bikes to other countries also.
Or atleast they will setup a facility which will be initialy used to manufacture choosen models and later can be expanded.

Originally posted by rx100.7050 View Post

Well, incentive is to set up full fledged manufacturing plant in India (boosting ancillary Industries too) & create jobs & help the India economy

Originally posted by insane79 View Post

Yes thats right, like what VW did in india, the govt wants more of that which i agree to a certain extent..

+1 agree. Now this puts companies like JLR, A,M and BMW and Hyosung, Kawasaki,etc. in two minds. If this legislation is passed(which is likely) then CKD route will be of not much help. The question will be- "Whether to CBU or not to CBU...."

(Barely half an year ago..somewhere near Diwali, somewhere in newspaper, an Audi India top official said that it takes an investment of around 600cr to setup a 100 meter assembly line.
Thats for cars. Guess what about bikes

)

**dushyant123** · 03-01-2011, 05:44 PM

If you gyyz analyze the full budget this year you'd notice that they've increase taxation on almost all permium and luxury segments. The taxes on Branded clothes, hotel services etc have been increased. i think they've done the right thing. As inflation decreases and our currency is strong again all taxes will be reduced so nothing to worry.

**enfro** · 03-01-2011, 06:40 PM

Originally posted by dushyant123 View Post

If you gyyz analyze the full budget this year you'd notice that they've increase taxation on almost all permium and luxury segments. The taxes on Branded clothes, hotel services etc have been increased. i think they've done the right thing. As inflation decreases and our currency is strong again all taxes will be reduced so nothing to worry.

**ronthedon** · 03-01-2011, 08:11 PM

Originally posted by Puneet1 View Post

now what will happen to the prices of ckd harleys , hyosungs , ninja 250

. more convenient now to just get cbu s instead of thinking of ckd assemblies . wrong move by the govt imo

Don't think Hyosung will be affected, since Korea has a FTA with India.

**darkside_of_d_sun** · 03-01-2011, 08:41 PM

IMO, its a good move! It will force manufacturers to take a stance, either go CBU (jack up the price and sell in miniscule nos.) or make it here! Honda and Harley are choosing the later route, wonder how long Bajaj-Kawasaki and others will keep off!

**rx100.7050** · 03-01-2011, 08:49 PM

Originally posted by enfro View Post

If Baj-Kaw keep assambling them then it may be over 3.5L-3.75 ex-show. Just an estimate.

CBR250R would not come through CKD route. I will be manufactured in India itself.
HD- Initially the factory was to be setup for 883 only (i think 2 variants in it). Now they have not given any details about manufacturing. So no news whether its only for 883 or other models also. But to see it with common sense, they would like to set up a facility which manufactures other models too because they intend to export bikes to other countries also.
Or atleast they will setup a facility which will be initialy used to manufacture choosen models and later can be expanded.

+1 agree. Now this puts companies like JLR, A,M and BMW and Hyosung, Kawasaki,etc. in two minds. If this legislation is passed(which is likely) then CKD route will be of not much help. The question will be- "Whether to CBU or not to CBU...."

(Barely half an year ago..somewhere near Diwali, somewhere in newspaper, an Audi India top official said that it takes an investment of around 600cr to setup a 100 meter assembly line.
Thats for cars. Guess what about bikes

)

Actually my question was that whether Honda will be assembling CBR 250 right from scratch because as per budget they need to assemble the crucial engine, crankshaft & transmission too then only they will get the advantage

**rx100.7050** · 03-02-2011, 01:50 PM

Since German Manufacturers will be hit the most, manufacturers have alerted German Embassy about the uncomfortable situation. India is growing market of Luxury car and everyone is vying for a piece of this pie

**docted** · 03-02-2011, 03:24 PM

Originally posted by dushyant123 View Post

If you gyyz analyze the full budget this year you'd notice that they've increase taxation on almost all permium and luxury segments. The taxes on Branded clothes, hotel services etc have been increased. i think they've done the right thing. As inflation decreases and our currency is strong again all taxes will be reduced so nothing to worry.

Oh brother , i have no idea about the ways and methods of money, but i PRAY you are right !

cheers !

**cicatrix** · 03-03-2011, 01:15 PM

Sorry to sound like a NOOB but will this affect the products coming from nations or regions having FTA with India???

If yes then I may continue to day dream about the Hyosungs and Kwackers!

**enfro** · 03-05-2011, 09:11 AM

Originally posted by rx100.7050 View Post

Actually my question was that whether Honda will be assembling CBR 250 right from scratch because as per budget they need to assemble the crucial engine, crankshaft & transmission too then only they will get the advantage

They will manufacture most of the parts in India. including engine, crank and transmission. They might source bits and tits though.

Originally posted by cicatrix View Post

Sorry to sound like a NOOB but will this affect the products coming from nations or regions having FTA with India???

No it wont...like the FTA we had with South Korean, in 2009 i think, which said of removing/lowering duties on Korean auto parts gradually over next 10 years.
The new budget lines will not affect such agreements.

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Budget disallows manufacturers a concessional 10% import duty for cars and mobikes

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