Are Indians being ripped off ?

[MrBoombastic]

Are we being screwed? OF COURSE we are!! I have said this time and over again... The Indian version of any car (and I am not even going back to 2003... Look at the 2006 releases) is so stripped down that it's shameful and hurts! (Forget the comforts, I mean even on safety features!!)

[GTO]

If we look at Ajmats fantastic analysis, we are actually not getting screwed!

GTO

[veyron1]

in terms of car costs, well, i feel that the manufacturers can do better; at least the govt. should reduce the tax structures, which are the highest in india...

ohkay, if the car makers aren't ripping us off, the petro-makers are: fuel prices are one of the highest in india; especially when you take into account the fact that our friendly neighbours, pakistanis, are paying almost half- last i heard, petrol cost around 22 bucks there....

do we think we are okay on both the car and the fuel costs front ? wrong.. forget europe, if compared to u.s , we are paying through our noses for the bare essentials...see, it's like this: it depends upon who you take, to compare us with: compared to europe, we might seem okay; elsewhere, we are the losers....

[adya33]

ohkay, if the car makers aren't ripping us off, the petro-makers are: fuel prices are one of the highest in india; especially when you take into account the fact that our friendly neighbours, pakistanis, are paying almost half- last i heard, petrol cost around 22 bucks there....

when comparing fuel prices always consider the avarage income, avarage distance travelled and the percentage of income going into fuel costs
then picture gets clear

[devarshi84]

Also, though on a different note, if you consider the amount you pay for car insurance in US/Canada over a period of few years, you'll probably land up paying more for your car than in India.

hey thanks for mentioning that. I didnt take the huge insurance these people pay in to account.

Three reasons :

1. Taxes at varied levels.

2. Economies of scale - The Accord sells about 5,00,000 units p.a. in the States, while it sells about about 2,500 p.a. in India.

3. Localisation level : Many cars sold here yet have a significant import content.

GTO

GTO but the economies of scale are created because of the prices of the cars. If they reduce the price they will acheive the same economies of scale.

[MrBoombastic]

Originally Posted by GTO

If we look at Ajmats fantastic analysis, we are actually not getting screwed!

GTO

Yes, I did read Ajmat's cool analysis before I made this post and that's why I never said anything about the price. My point is that people abroad get a lot more features for the price they pay, while we Indians get a stripped down version for the "not getting screwed price" we pay. This trend is not new, when Zen started being exported from here years ago, the Indian version would not even have a left hand side mirror while the ones sold abroad were cheaper and got a lot more than just the left hand side mirror.

[GTO]

GTO but the economies of scale are created because of the prices of the cars. If they reduce the price they will acheive the same economies of scale.

Dude, reducing prices is NOT the only way of accomplishing higher sales. Remember that Indians are no longer price driven. They are more value driven.

Mr. Boombastic - I agree with the stripped down point.

GTO

[imjimmy]

ohkay, if the car makers aren't ripping us off, the petro-makers are: fuel prices are one of the highest in india; especially when you take into account the fact that our friendly neighbours, pakistanis, are paying almost half- last i heard, petrol cost around 22 bucks there....

Add Thailand, China and other Asian countries to the list.

Last time i saw in CHina the 97 Oct Petrol there was 28 bucks(after conversion from the Yuan).. Similarly with Thailand.

The prices have to be high in India especially when the FM cries when asked to reduce the duty structure by a few pecentage pts for Petrol!

[adya33]

Originally Posted by imjimmy

Add Thailand, China and other Asian countries to the list.

Last time i saw in CHina the 97 Oct Petrol there was 28 bucks(after conversion from the Yuan).. Similarly with Thailand.

The prices have to be high in India especially when the FM cries when asked to reduce the duty structure by a few pecentage pts for Petrol!

I will repeat myself

don't compare prices one to one
consider the percentage of income going into fuel

[MrBoombastic]

Click here and break your heart the way I did mine.

[devarshi84]

looks like the prices are terribly wrong. Must be an old article.

and the prices in US dont include the most expensive part i.e. the insurance.

[sbasak]

Cars in India are overpriced because our govt. still thinks that only "rich" people can afford cars! However, used car prices are drastically falling nowadays in India.

Don't fret about cheap car prices abroad. In UK, if you buy a used car, chances are that you'll have to pay an insurance premium which is higher than price of the car!!!

In India, insurance depends on the car but in UK the insurance mainly depends on the "driver" and "car" to some extent.

[tsk1979]

Our FM hinted that cars are taxed like luxury good for now, but he will change things come January 2006. If he stays true to his word, this would mean 15-20000 reduction in prices of midsize cars with savings going to 50k+ in case of upper C and lower D segment cars. So doesn't it make sense to put of your purchases and wait for the new auto policy.

[vivekiny2k]

I think he said he will do it only fo small cars.

also he said that old vehicles will be heavily taxed for discouraging their usage. does it mean restoring vehicles will not be a good business anymore?

[Aroongupta]

Guys, I am planning to buy an Optra. Do you think it would be a wise idea to wait till january. One thing is teh price reduction you mentioned...and secondly its anyhow not a godd idea to buy a car in December. It will affect resale.

Arun