Team-BHP - View Single Post - How much profit do they make on each new car sold?

man23ish · 22nd November 2005, 15:01

I don't think anybody would be manufacturing cars, if there were no profits involved.. I mean look at all the cost of equipment, raw material, labour, quality, etc. Certainly, no manufacturer is going to do a charity by paying all the costs and than incurring losses.. I doubt, if the cost of a 6-lac car to the manufacturer would be more than 4 lacs considering the economies of scale..

But i do know that the majority of their earnings is from the After Sales Servicing. Look at companies like Maruti, Tata and Hyundai, they can sell their cars cheaper, coz the *** guys will make money for them after the car is sold..

22nd November 2005, 15:01	#6 (permalink)
man23ish BHPian Join Date: Jan 2005 Location: Hyderabad Posts: 556	I don't think anybody would be manufacturing cars, if there were no profits involved.. I mean look at all the cost of equipment, raw material, labour, quality, etc. Certainly, no manufacturer is going to do a charity by paying all the costs and than incurring losses.. I doubt, if the cost of a 6-lac car to the manufacturer would be more than 4 lacs considering the economies of scale.. But i do know that the majority of their earnings is from the After Sales Servicing. Look at companies like Maruti, Tata and Hyundai, they can sell their cars cheaper, coz the *** guys will make money for them after the car is sold..