Are Indians being ripped off ?

[ajmat]

Why can’t cars be cheaper ?

We are being ripped off !!!!

Too expensive in India

Are these facts or myths ?

Well in the following spreadsheet, I compared UK prices vs Indian prices for near identical models – Pound is assumed to be Rs 78. I also did an analysis of the cars stripped of the tax component to see whether it is the manufacturer or the government ripping us off. Anything less than 0.85 is a rip off. Of course, there are discounts and minor spec changes that could affect the balance here and there.



Lets deal with each manufacturer individually

Chevrolet - Believe it or not, the Forester costs the same in the UK as over here - . Either it is a big loss leader or there is a huge margin somewhere. Strip off the taxes and you can see what a good price we are getting. Optra’s are well priced and good value

Ford - So, the Fusion is expensive – erm no – it looks to be 60% more expesive in the UK. Saying that, the Fusion is heavily discounted in the UK so it could be 30% more – so Mr Natrajan – you have a global product at a good value !!!!! Mondys – now cost the same but heavy UK discounts can change the equation.

Hyundai -The imported models are a rip off. Look at the tuscon ratio especially when stripped off taxes. The small car cost advantages in India is impressive.

Suzuki - Swift 1.3 was considered – a good 30% less than what is paid in the UK – it shows in the interior quality – basic car price is 50% more in the UK!!! The Vitara is overpriced but duty structures play a big part here.

Honda - UK do not get the City – instead, I used the Jazz – what is lost in India is the ABS + airbag. This is offset by the saloon body. Localisation means we pay 15% less or 32% compared for the basic car. We pay slightly more for the CRV, pretty good considering it is fully imported.

Mercedes - Ultimate rip off – lowest index is 0.65. Even if the bits are imported, Honda and Chevy give us imports near the UK price. Strip the taxes and we are sold the basic car at a 30% premium.

Nissan - Expensive even though we pay less for the basic car– enough said

Skoda - Only the Vrs is for sale, we lose 30bhp. In both cases, we pay the same for the basic car but get screwed on prices

Tata - I expected more – ie the Swift and the Getz with a few foreign bits sells for 30%less than the UK but the Indica sell for the same price – quick buy Telco share quickly

Verdict – Quite a few manufacturers like Honda, Chevy and Ford are working hard to give us good value. Local small cars are good value. The boys in Pune – Mercedes and Telco are really ripping us off.

[Rtech]

Car's like the Fusion, Swift, probably the Mondeo too, are far better equiped when they are sold abroad. So that needs to be taken into consideration as well.

[sandeepmdas]

Let me delete this post. googly!

[Psycho]

Ajmat I dunno if the cars costs are ripoff's or not however I fell in love with your signature and looks like both of us have latched on to the same person

[sandeepmdas]

Originally Posted by Rtech

Car's like the Fusion, Swift, probably the Mondeo too, are far better equiped when they are sold abroad. So that needs to be taken into consideration as well.

Plus:
The manufacturers also support these vehicles in a far better way than they do here. Support is an absolute must there and the cost factors for this also to be taken into consideration. (Remember the thread Suzuki recalls so many Swifts?). As Lee Iacocoa famously said in 1998, "(in 2010) car buyers will not going to be surprised by the technolgy or bells and whistles around them, so the real battle will be in the service and support front".

[tsk1979]

Hmm not too sure about telco! Optra ratio after taxes is 1.1, and indica is 1.23. After stripping of taxes the car would cost about 2.8 here and 3.5 in UK. So couldn't really match your conclusion!

[BuRnT RuBbEr]

Originally Posted by sandeepmdas

Plus:
The manufacturers also support these vehicles in a far better way than they do here. Support is an absolute must there and the cost factors for this also to be taken into consideration. (Remember the thread Suzuki recalls so many Swifts?). As Lee Iacocoa famously said in 1998, "(in 2010) car buyers will not going to be surprised by the technolgy or bells and whistles around them, so the real battle will be in the service and support front".

for instance... in the states...suzuki is providing 5 year warranty with transferabilty of ownership...and nil interest loans as well..

and we often hear words about some or the other car being recalled...for even minor glitches....like sqeeks in the back seat....for which they wont really bother here.....

and..what to say about those dashboards..with gps and in-dash disc player thrown in?

[Mpower]

Good Analysis. The other thing is competetive pressures, for example Corolla in India has nothing much to worry about, where as in UK/US they have to fight with the likes of Civic, Golf, Sunny, 206, Leon, Neon .......u name it.

[devarshi84]

Here in Canada the camry is cheaper than corolla in India. even that is a v6.

v6 automatic for $ 33K cad .

the accord automatic here costs the same as city cvt in india. price is $24k CAD

[v_s_natarajan]

Originally Posted by ajmat

Why can’t cars be cheaper ?

We are being ripped off !!!!

Too expensive in India

Are these facts or myths ?



Ford - So, the Fusion is expensive – erm no – it looks to be 60% more expesive in the UK. Saying that, the Fusion is heavily discounted in the UK so it could be 30% more – so Mr Natrajan – you have a global product at a good value !!!!! Mondys – now cost the same but heavy UK discounts can change the equation.

.

Ajmat,
thanks. that was a nice comparative report. I drove the fusion+ a.ka. Fiesta in UK. When that came to India, I thought what the heck and paid up 7.8L(after getting income tax rebates, it works out to Rs 3,00, 000.
Good comparison that was.

[devarshi84]

I am really confused about the pricing of cars in INDia.

while a corolla is manufactured in India and also in other parts of the world.

here in canada it costs 17000$=6,00,000
In India it costs clost to 10 lakhs

The new sonata costs 18000$US=7,50,000
In India it is 12lakhs

why do we pay more and at which point is this price glitch coming into the price???

which car makes the best buy according to the international markets. i.e. which car is priced same world over?

[hawkeye]

The answer is the money that goes to the Central Government of India (taxes, excise, import duties, etc).

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.

Many people do not think about this when they look at the car prices in US/Canada

[abhibh]

Yup 40% of the car goes to Govt. so prices are more. Insurances are costly at Canada/USA coz they cover all the risks of the owner, driver and the third party.

[GTO]

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

[ajmat]

Note from the Admin : Thanks! Threads merged