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Originally Posted by extreme_torque  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.  |
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Originally Posted by GTO There is no doubt that the C Class is grossly overpriced, BMW & Audi have also followed the successful trend set by Mercedes. However, to expect a price of 13 lakhs is a bit over the top. Realistically, it shouldn't be a rupee over 25 - 26 lakh rupees. |
I, respectively, disagree. ExtremeTorque's calculation does not factor in the costs of setting up operations in India, or the additional costs they incur to produce in this country. These are variables that do no factor in the West. That being said, I
don't believe that anything more than 22Lacs-23Lacs OTR is appropriate for the C Class, 35 lacs for the E Class and 55 lacs for the S Class This is classic Mercedes Benz overpricing and exploitation, a model that manufacturers like BMW & VW/ Skoda are beginning to emulate for their cars, rather shamefully.
I will NEVER buy a German manufactured product sold new in India as long as they continue to price in this manner. Shame...'cause they could do so much better