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Govt partially increases duty on CKD cars

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After much debate and SIAM's intervention, the Government has relented on its stand on CKDs (Completely Knocked Down), but not before halving the intended new excise rates for CKDs. The government had in its Union Budget announced a six-fold increase in the excise duty for CKD units, causing an uproar and heartburn for many auto manufacturers in the country.

In a move that is still bound to make a host of cars more expensive than before, the government has provided some relief by increasing the excise duty on CKD cars (with fully built transmissions and/or engines attached to the frame) from 10 per cent to 30 per cent and not 60 per cent as originally announced the Union Budget for 2011-12.

What this means is that cars such as the Audi A4 and BMW 3 Series that are assembled in India, but have fully built engines and transmissions will now attract 60 per cent duty. This will take the hands of the clock back to the time when SKD or Semi-Knocked Down kits were offered at a higher excise band. SKDs at one-point were charged at 60 per cent excise duty, making them more expensive than their CKD or locally manufactured counterparts.

PLEASE TURN OVER TO SEE THE LIST OF CARS WHOSE PRICES ARE EXPECTED TO GO UP!