Most of the high prices that we face are basically due to our tax-system and a govt that considers most full-size cars as luxury products. Secondly whenever an 'import' quotient comes into the picture the 'articially tabulated' dollar rate comes into play.
Importing parts in dollars is a losing proportion for the Indian consumer because he has to then factor in an artificially inflated currency and that reduces his purchasing power.
Americans can afford to buy maximum numbers of cars in the world because their currency is kept as global currency due to factors of economic and military coercian and they purchasing power is hugely inflated due to the nature of their currency which is taken as globally accepted currency.
If at the same time the Indian currency was accepted as global currency then we would be buying 3 times the cars the americans bought.
Countries in the middle-east meanwhile take advantage of the fact that energy trade in dollars keep their dollar reserves overflowing and they can use that to splurge in whatever way they deem fit.
The European Economic Zone is the hub of all automative manufacturing and innovation and thus escape and currency shocks and enjoy common duties.
The same goes to a certain extent with the ASEAN and east asian countries.
While poor India is left with high-priced cars with limited models, with the purchasing power of people kept at a low level and every odd in the book stacked up against them. |