Mexican Media Brands
India Drops Tax Breaks on Cars
The Indian government has phased out breaks on excise taxes for cars and other consumer goods, effective Jan. 1.
#economics
Share
The Indian government has phased out breaks on excise taxes for cars and other consumer goods, effective Jan. 1.
The resulting increases will range from 8% to 24% depending upon a car's size and price and cost between 8,000 and 200,000 rupees ($126 and $3,200), according to BBC News.
The policy shift produced a sharp increase in sales in December. Sales jumped for Maruti (13% to 98,100 units), Hyundai (15% to 32,500), Mahindra (5% to 17,300), Honda (163% to 14,400), Ford (28% to 14,400) and Tata (30% to 12,000), The Financial Express reports.
Analysts expect this year's higher prices to generate a sales slump in January that will continue for several months. Car dealers are bracing for an especially big decline in demand for SUVs.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.