Why are cars expensive in India?
Cars are expensive in India because the duties are very high. For every lac you spend on a full made in India car, about Rs 25000 goes to the government. and for a fully imported car the government gets Rs 57000. All these in the form of various taxes, CV duty, Excise duty, customs duty, road tax, entry tax, other cess and levies.ie. Maruti 800 (full made in india) costs 225000 (on road) of which the government gets 56250Toyota Camry (full import) costs 2500000 (on road) of which the government gets 1425000!!!Summarizing the facts, Few reasons are as follows1. High Taxes2. Low volumes3. High dealer margins4. Transportation costs5. High Manufacturer margins. Most manufacturers in US/Europe have low single-digit margins and in India it is at least in double digitsAlso Cars are very cheap in US due to high competition and their margin is very low.... That's why ford and other major manufactures are suffering huge losses.... Indian car manufactures profit margin is high that's why Maruti, Tata and others are reporting spectacular results Quarter on Quarter.
Why are luxury cars so expensive in India?
The import duties on foreign cars are huge! If imported as CBU (completely built up units) the price increases by at least 100%. In case of Supercars, the import duties can reach 200%! Even the cars that are assembled here, taxes on imported parts is 60%. After that, add the profit margin, cars become much more expensive in India than in Europe and USA. The likes of BMW, Jlr, Merc and Audi are laying more emphasis on localisation and that has actually decreased prices of some of the vehicles. But by now. Indians are used to paying at least 30l on entry level luxury cars so the companies won't be interested in giving them for too cheap. However things could change if the import duties fall but that's unlikely to happen. There were rumours Arun Jaitley would've done it this year but the budget provided no respite.
How is it to own an expensive car in India?
Major factors affecting arePot holes.Speed breakers ( every 200 metres) . Better call them small mountains than sp3ed breakers.People. Such high prm cars might bump the one front of you as it is so crowded. People will hit and swear no know matter who it is.Cattles all over the road.Mopeds , autos driving too close to your supercarStolen rims,tyres,emblems.Fuel. Cheap gasoline filled with dirt.Someone can buy supercar for indian roads only for status. Or buy DC avante supercar which ia built for indian roads
Why cars are so expensive in india as compared to US or other nations?
Nearly 3.5 times higher than in the US at $35,000 or almost Rs 23.48 lakh.Ford India today launched the iconic 'American' muscle car Mustang in India. The Mustang in India will be available only in one variant, ie the GT Fastback.This comes with 5.0-litre Ti-VCT V8 engine which generates power of 396bhp and 515Nm of torque.The car in the country is priced at Rs 71.62 lakh ex-showroom Delhi and on road 83.71 lakh, here RTO almost tax 8.95 lakh and insurance takes 2.42 lakh…(yup almost 11 lakh more people pay to RTO and other)At this price the car is priced nearly 3.5 times higher than in the US at $35,000 or Rs 23.48 lakh.One of the reasons for this high price the car is available via completely built-up unit (CBU) route. Meaning that it will be imported in India from the Flat Rock assembly plant in the US. This will attract some high custom duties.While the basic custom duty for imported CBU of passenger cars, jeep or multi utility vehicles is 60%, there could also be an additional custom duty of 32% and special additional duty of 4%. The total custom duty is at 119.65%.It still does not justify the high price of Mustang in India.In fact, those looking to buy the car in Maharashtra will have to shell out more with the 20% RTO taxes for imported vehicles. In addition to this, there may be additional taxes imposed for those looking to buy the car in Mumbai.Some of the other competitors in India will include the Audi TT, BMW Z4 and the much awaited Nissan GT-R. The price of these cars too are in this same range and some being higher. For instance the Audi TT is priced at Rs 65.43 lakh (ex-showroom Delhi), while the BMW Z4 is priced higher than the Mustang at Rs 81.80 lakh. The Nissan GT-R in fact is expected to priced much higher at Rs 2.12 croreHowever, the Audi TT and BMW Z4 engine has a much lower horsepower.For example lets take mustangSo, the reason behind our market cars isn't that use of cheap material in indian cars because it is made in india, so thats are at lower price and “other sport cars which people import it to india is as follow above conditions” (india's worst tax system)Need to change it now…..
Why are cars and bikes so expensive in India compared to USA?
The primary reason is very high effective taxes. The fully assembled cars attract a very high rate of customs duty. Prices of cars in India have come down if you consider the dollar parity. For example, in 1984, the Maruti 800 cost Rs.85,000 which was ~$8,500, or Rs.5.65 lakhs at today's exchange rates. A lot of parts and sub-systems like the transmission and the electronics are still imported. Car models with a high level of domestic content tend to be lower priced. Many of the cars compromise on specs. For instance, most of the low to mid-range vehicles have hollow fenders that do little to protect the car in case of collision. If you are talking about mobikes, the kind of commuter bikes sold in India, the 100-175 cc range, do not exist in USA. The much larger bikes like Harley Davidson are a tiny market in India and bought by very few enthusiasts.
Why audi is so expensive in india?
Its not just audi but all cars. The import duties on foreign cars are huge! If imported as CBU (completely built up units) the price increases by at least 100%. In case of Supercars, the import duties can reach 200%! Even the cars that are assembled here, taxes on imported parts is 60%. After that, add the profit margin, cars become much more expensive in India than in Europe and USA.The likes of BMW, Jlr, Merc and Audi are laying more emphasis on localisation and that has actually decreased prices of some of the vehicles. But by now. Indians are used to paying at least 30l on entry level luxury cars so the companies won't be interested in giving them for too cheap. However things could change if the import duties fall but that's unlikely to happen. There were rumours Arun Jaitley would've done it this year but the budget provided no respite.
Why are vespa scooters so expensive?
Fairly nice machines with an old, established name. Built in Italy where labor is costly. Hence the high price. Unfortunately quality does not match the price lately. In 1980 I bought a 1967 Vespa Sprint 150, which was an excellent scooter by those days' standards. Then I bought a Piaggio X8 200 in 2004, which start to fall apart after fist 6 months. Nothing serious but irritating. By the way Piaggio is the actual company thet produces Vespa. In 2005 I got a Vespa ET4 150. No major problems but poor handling at speeds over 40 mph. My brother just bought a Piaggio FLY 100 about a month ago and it has serious cold start problems. Very noisy over the potholes, poor storage space and not very good milage. Personally I prefer Honda any day. I have been riding one for the last 2 years and not one glitch.
Why are luxury cars sold in China so expensive?
Compared to auto markets around the globe, China's thirst for luxury vehicles only recently began to blossom. Along with this increase are two main reasons cars in China cost more $$$.The first is the higher profit margin that accompanies selling vehicles in China. If you look on the streets of Beijing, you will see very little variety -- Audi, Mercedes-Benz, and BMW almost completely monopolize the entire market. In contrast, US/Europe host a much greater variety of vehicles (Cadillac, Jaguar, etc.) and thus competition. Businesses can jack up prices and bring in more money.The second reason is China's special taxation policies. Various taxes are piled on that ultimately burden the consumer. For instance:A source within BMW-Brilliance says that, mainly because of “customs duties and policy factors,” China-made BMW cars are far more expensive than BMWs sold in the U.S. Take a ¥1.16 million BMW 740Li, for example. From its importation to its purchase by a Chinese customer, the car is subject to taxation three times, namely, a 25 percent import tariff, a 25 percent consumption tax for cars with engine displacement bigger than 3.0 liters and a 9 percent vehicle purchase tax. The first two are included in the price of the car and the last is not. When buying the car, the customer pays ¥480,000 in taxes and fees comprising: ¥190,000 as import tariff, ¥190,000 as consumption tax and ¥100,000 as vehicle purchase tax.Source: Why cars more expensive in China than in the U.S.?For this reason, Chinese vehicles tend to be more expensive than their American or European counterparts.