Quote:
Originally Posted by Mayavi  Ok, that is really bad math. You dont slash the number of cars by half to make up for the 100% import duty. If you can sell 10 units at a price tag of 1 crore, it doesnt mean you can sell only 20 units at 50 lakhs. No sire, at 50 lakhs, you can sell may be 50 units because the number of people in that income bracket are much more than people in higher income bracket.
An easy example is the sales of B segment cars. If Swift sells 1000 units a month at 5 Lakhs, it can sell 10,000 units a month at 2.5 lakhs.e
Second, when you compare two cities be it cars or consumer goods, you have to take into consideration the per-capita, infrastructure, taxes and many other things. IIRC Dubais per-capita is over $15,000 where as Indian per-capita is $700. If you only consider Mumbai or Delhi, it is still not more than $5000. Obviously dubai is a rich country and couple it with low taxes, it is even more easy to afford cars. Also, they have better infra where they can really drive their cars which is lacking in India.
Third, well, its a question for you. Why are there so many exotics in Dubai when they don't seem to have any solid industrial base? |
hey mayavi
ok first of all its mathematicly correct but yes ur right in such cases the economic point of view must also be taken into consideration if ur familiar with a bit of eco then you will know about the term price elasticity in the case of high end and low end products(here high end cars) the price elasticiy is relatively inelastic in other words the percentage of change in demand would be much less if compared to the percentage of change in price.
secodn of all i think ur taking this to personaly i mention it right in the begaining im not defying anyone but just doing a comparitive analysis to see on its way to have a great car scene where india has reached
and regarding the exotics part as in why there are with no industrial base, well thats why they have been diversifiying and growing at such a fast rate in the past 4 or 5 years