Quote:
Originally Posted by vasudeva  Have you figured out what is the import duty and also the excise duty. Of course, car makers can absorb the duties and sell it to you at international market price. But usually that would mean a loss for them. I am not defending the makers but high duties=high prices=low consumer welfare=coddling of domestic makers=encouraging domestic car production. |
You have got me completely wrong. If a Merc C class can be produced and sold for a meagre 13 Lakh rupees along with strict warranties and roadside assistance programs on profit, consider the profit Mercedes is making per car by selling it here, upwards of 32 lakh rupees minus some equipment which is standard in the US Spec car. C class is assembled here and import as a CKD which has cosiderably lower duties than CBU's, less than half infact. Keeping the duties in mind, ideally the C class should be availbale here for 18-19 lakh rupees (13 lakh + CKD import duty which is b/w 30-40%).
"Protecting the domestic industry" is a very weak argument. If a C class can be built and sold in US for 13 lakh rupess I am 1000% sure if it were to be made here, it will be even cheaper. The salaries alone would save them more than half the cost. Now if a C class can be sold for 13 lakhs all inclusive which includes R&D costs + transportation cost + profit, dont you think paying 4 lakh+ rupees for an Indian built Wagon R or an i10, daylight robbery. Everyone's here to milk the consumers.
