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ajmat · 6th August 2005, 10:29

Why can’t cars be cheaper ?

We are being ripped off !!!!

Too expensive in India

Are these facts or myths ?

Well in the following spreadsheet, I compared UK prices vs Indian prices for near identical models – Pound is assumed to be Rs 78. I also did an analysis of the cars stripped of the tax component to see whether it is the manufacturer or the government ripping us off. Anything less than 0.85 is a rip off. Of course, there are discounts and minor spec changes that could affect the balance here and there.

Lets deal with each manufacturer individually

Chevrolet - Believe it or not, the Forester costs the same in the UK as over here - . Either it is a big loss leader or there is a huge margin somewhere. Strip off the taxes and you can see what a good price we are getting. Optra’s are well priced and good value

Ford - So, the Fusion is expensive – erm no – it looks to be 60% more expesive in the UK. Saying that, the Fusion is heavily discounted in the UK so it could be 30% more – so Mr Natrajan – you have a global product at a good value !!!!! Mondys – now cost the same but heavy UK discounts can change the equation.

Hyundai -The imported models are a rip off. Look at the tuscon ratio especially when stripped off taxes. The small car cost advantages in India is impressive.

Suzuki - Swift 1.3 was considered – a good 30% less than what is paid in the UK – it shows in the interior quality – basic car price is 50% more in the UK!!! The Vitara is overpriced but duty structures play a big part here.

Honda - UK do not get the City – instead, I used the Jazz – what is lost in India is the ABS + airbag. This is offset by the saloon body. Localisation means we pay 15% less or 32% compared for the basic car. We pay slightly more for the CRV, pretty good considering it is fully imported.

Mercedes - Ultimate rip off – lowest index is 0.65. Even if the bits are imported, Honda and Chevy give us imports near the UK price. Strip the taxes and we are sold the basic car at a 30% premium.

Nissan - Expensive even though we pay less for the basic car– enough said

Skoda - Only the Vrs is for sale, we lose 30bhp. In both cases, we pay the same for the basic car but get screwed on prices

Tata - I expected more – ie the Swift and the Getz with a few foreign bits sells for 30%less than the UK but the Indica sell for the same price – quick buy Telco share quickly

Verdict – Quite a few manufacturers like Honda, Chevy and Ford are working hard to give us good value. Local small cars are good value. The boys in Pune – Mercedes and Telco are really ripping us off.

6th August 2005, 10:29	#1 (permalink)
ajmat Team-BHP Moderator Join Date: Feb 2004 Location: Bangalore Posts: 5,215	Are Indians being ripped off ? Why can’t cars be cheaper ? We are being ripped off !!!! Too expensive in India Are these facts or myths ? Well in the following spreadsheet, I compared UK prices vs Indian prices for near identical models – Pound is assumed to be Rs 78. I also did an analysis of the cars stripped of the tax component to see whether it is the manufacturer or the government ripping us off. Anything less than 0.85 is a rip off. Of course, there are discounts and minor spec changes that could affect the balance here and there. Lets deal with each manufacturer individually Chevrolet - Believe it or not, the Forester costs the same in the UK as over here - . Either it is a big loss leader or there is a huge margin somewhere. Strip off the taxes and you can see what a good price we are getting. Optra’s are well priced and good value Ford - So, the Fusion is expensive – erm no – it looks to be 60% more expesive in the UK. Saying that, the Fusion is heavily discounted in the UK so it could be 30% more – so Mr Natrajan – you have a global product at a good value !!!!! Mondys – now cost the same but heavy UK discounts can change the equation. Hyundai -The imported models are a rip off. Look at the tuscon ratio especially when stripped off taxes. The small car cost advantages in India is impressive. Suzuki - Swift 1.3 was considered – a good 30% less than what is paid in the UK – it shows in the interior quality – basic car price is 50% more in the UK!!! The Vitara is overpriced but duty structures play a big part here. Honda - UK do not get the City – instead, I used the Jazz – what is lost in India is the ABS + airbag. This is offset by the saloon body. Localisation means we pay 15% less or 32% compared for the basic car. We pay slightly more for the CRV, pretty good considering it is fully imported. Mercedes - Ultimate rip off – lowest index is 0.65. Even if the bits are imported, Honda and Chevy give us imports near the UK price. Strip the taxes and we are sold the basic car at a 30% premium. Nissan - Expensive even though we pay less for the basic car– enough said Skoda - Only the Vrs is for sale, we lose 30bhp. In both cases, we pay the same for the basic car but get screwed on prices Tata - I expected more – ie the Swift and the Getz with a few foreign bits sells for 30%less than the UK but the Indica sell for the same price – quick buy Telco share quickly Verdict – Quite a few manufacturers like Honda, Chevy and Ford are working hard to give us good value. Local small cars are good value. The boys in Pune – Mercedes and Telco are really ripping us off. __________________ I love the whoosh, but i miss the bellowing Last edited by Rtech : 6th August 2005 at 12:23.