"In the short-term, there will be an impact on the demand for the vehicles. However, if the interest rates favourably come down, we may see revival of demand in the auto industry in future," M&M president (Automotive and Farm Equipment Sector) Pawan Goenka said
New Delhi: With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India will hike prices of their vehicles by up to Rs70,000, reports PTI.
"We are going to raise the prices of all our products and will pass on the entire additional excise duty. Currently we are working on the exact amount of the hike," Maruti Suzuki India managing executive officer (marketing and sales) Mayank Pareek told PTI.
Home-grown auto major Mahindra & Mahindra (M&M) also said it will increase the prices of its entire range of products.
"Given the current economic scenario and the revenue deficit of the country, the hike in excise duty was fully anticipated. Although the industry will not cheer about this, but we have to live with it," Mahindra & Mahindra president (Automotive and Farm Equipment Sector) Pawan Goenka said.
The industry will pass on the entire burden of excise duty to customers, he added.
"The input costs have also gone up in recent times.
Considering this, we will raise the prices of our vehicles by 2%-3%, translating into an increase of Rs6,000 to Rs30,000," Mr Goenka said, adding the exact amount will be fixed in due course of time.
The company will also increase the prices of its tractors by up to Rs5,000 to Rs6,000, he added.
"In the short-term, there will be an impact on the demand for the vehicles. However, if the interest rates favourably come down, we may see revival of demand in the auto industry in future," Mr Goenka said.
Honda Siel Cars India senior vice president (sales and marketing) Jnaneswar Sen said prices of all locally produced cars will be raised.
"We will pass on the entire burden to customers. We are currently evaluating the quantum of increase. In case of small car Brio, it will be around Rs7,000, while the same will be Rs60,000 to Rs70,000 for the luxury sedan Accord," Mr Sen said.
General Motors India vice president P Balendran too said the company will increase the prices of its all vehicles.
"We have not finalised the quantum of increase yet. We are going to pass on the entire hike. This is not a good step for the industry. It will further impact the sales," he added.
Finance minister Pranab Mukherjee today announced raising of excise duty to 12% from 10% at present.
Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from 22% and a fixed duty of Rs15,000.
Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27%, instead of the earlier 22% and a fixed duty of Rs15,000.
Canara Robeco gold exchange traded fund new fund offer closes 16 March 2012.
Canara Robeco Mutual Fund has launched Canara Robeco Gold Exchange Traded Fund, an open-ended scheme.
The investment objective of the scheme is to generate returns that are in line with the performance of gold, subject to tracking errors.
The new fund offer closes on 16 March 2012. The minimum investment amount is Rs5000.
The domestic price of gold is the benchmark index. Akhil Mittal is the fund manager of the scheme.
"An NBFC which is in receipt of certificate of registration (CoR) must necessarily commence NBFC business within six months of obtaining CoR:” RBI circular
The Reserve Bank tightened the screws on non-operative non-banking financial companies (NBFCs), excluding the residuary ones, by asking to commence business within six months of obtaining certificate of registration (CoR) from it, failing which their licences will be cancelled automatically. "An NBFC which is in receipt of CoR must necessarily commence NBFC business within six months of obtaining CoR. If the business of NBFC is not commenced within six months...the CoR will stand withdrawn automatically," said an RBI circular.
RBI further, said it has noted that some NBFCs obtain registration from the bank, park their funds in fixed deposits with commercial banks, but do not commence NBFI activities for several years thereafter. "It is clarified, that the RBI issues a CoR for the specific purpose of conducting NBFI activities (and that) investments in fixed deposits cannot be treated as financial assets and receipt of interest income on fixed deposits with banks cannot be treated as income from financial assets, as these are not covered under the activities mentioned in the definition of financial institution under Section 45I(c) of the RBI Act, 1934.
"Besides, bank deposits constitute near money and can be used only for temporary parking of idle funds, and/or in the above cases, till commencement of NBFI business." Under Section 45IA (1) of the RBI Act, 1934, no NBFC shall commence business or carry on the business of a non-banking financial institution without obtaining a CoR, and having a net owned fund of Rs25 lakh, which was increased to Rs200 lakh with effect from 21 April 1999.