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The document compares the selling price of a product in 2017 and 2019. In 2017, the price was Rs. 63,500 and in 2019 it was Rs. 72,500. However, if the price had increased equal to the dollar rate, it would have been Rs. 93,775. The lower actual price of Rs. 72,500 is due to 90% localization reducing costs. The document also shows sales of the price sensitive product decreased from 620,329 units in 2014-15 to 563,500 units in 2015-16 when the price increased from Rs. 69,900 to Rs. 63,500. However, when the price decreased further to Rs. 63,500 in 2015-16

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99 views2 pages

Meeting Points

The document compares the selling price of a product in 2017 and 2019. In 2017, the price was Rs. 63,500 and in 2019 it was Rs. 72,500. However, if the price had increased equal to the dollar rate, it would have been Rs. 93,775. The lower actual price of Rs. 72,500 is due to 90% localization reducing costs. The document also shows sales of the price sensitive product decreased from 620,329 units in 2014-15 to 563,500 units in 2015-16 when the price increased from Rs. 69,900 to Rs. 63,500. However, when the price decreased further to Rs. 63,500 in 2015-16

Uploaded by

hellosaady
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Selling Price Comparison

Year: 2017 Year: 2019

Price: Rs. 63,500 Price: Rs. 72,500

Dollar Rate: 105 Dollar Rate: 155

Price in terms of dollars: $605 Price in terms of dollars: $468

If price had increased equal to dollar price it would be 93,775 but because of 90% localization it is
72,500.

Price Sensitive Product

Year: 2014-15 Year: 2015-16

Price: Rs. 69,900 Price: Rs. 63,500

Sales: 620,329 Sales: 790,441

Growth in Sales: - 3% Growth in Sales: 27%

Technology Transfers INVESTMENT Volumes Increase


DENSO Sales
Years Growth
D.I.D
Technology Transfer ATLAS HITEC - DENSO $7.2 2009-10 440,054 16%
KEIHIN
Agreements Million 2010-11 544,332 24%
2011-12 600,041 10%
Carburator ATLAS AUTOS -D.I.D $ 20 2012-13 630,063 5%
Million 2013-14 640,148 2%
Clutch
Chain
Complex Technologies 2014-15 620,329 -3%
ACG 2015-16 790,441 27%
Coil Assembly 2016-17 920,662 16%
2017-18 1,086,000 18%
2018-19 1,140,380 5%
Impact of Dollar Price

Input Unit Sales


$ price
Cost Price

Issues in Budget
1. ACD:
- Additional custom duty will effect duty rates promised in AIP 2016-21.
- Cost of production of newly developed complex parts will increase rendering the
projects not feasible due to low amortization on low volumes.
- Technology transfer and employment roll back.
- OEMs will resort to comparatively cheaper import option which will increase import
bill.

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