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Old 5th July 2015, 21:57   #106
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by Turbanator View Post
You will hear some good news from BMW on price reduction shortly , 5 series & X5 take the biggest cuts , X1 & 3 more symbolic . I think details will be out by tomorrow
I hope they do as I've noticed the price hike was significantly more in comparison with its competitors.
This is based on my experience on what I've noticed in the Past two years when I was in the market.
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Old 5th July 2015, 22:04   #107
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Default The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

Less than 2 years ago I was being offered a 520d for 35-36 lacs ex showroom depending on which city I bought the car from. Today they quote close to 50L. That's the "facelifted" version with not more than 1 lac worth of new additional goodies going into the new car.

If Bmw goes the Mercedes C class way and reduces the price of the cars in question by 1-2 lacs because of localisation, it'll have no impact on sales IMO.

Bmw continues to live in a cocoon of their past glory of being no. 1 and they blatantly continue to make the same mistakes. My insurer recently informed me that the highest number of tire claims and hydrostatic locks claims come from his Bmw clients. Audi and Mercedes have almost no claims in this category he said. I too am the victim of a similar tire problem. I've got all 4 replaced once. And now again with less than 10k km on the new set, a couple of them have bubbled up. Hasn't happened with any of my cars besides the Beemer.

Add to that BMW's extremely poor sales staff (their after sales is awesome) , don't think Bmw is achieving any great things in india anytime soon.
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Old 7th July 2015, 20:01   #108
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

Today i was offered a C 250 CDi for 55 lakhs on road at Cochin! E class comes for 64 lakhs. The pre face-lifted models were offered around 28lakhs for C class and 35-40lakhs for E class just a couple of years back. New pricing is too much. Same as the case with Bimmer 520 D - 40lakhs and now it is close to 60lakhs. Insane pricing i must say. Awaiting the good news as someone posted before. CBU GLA was costing 47 lakhs for sports version and CKD version now costs just Rs.3 lakhs less.
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Old 7th July 2015, 23:33   #109
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by Turbanator View Post
You will hear some good news from BMW on price reduction shortly , 5 series & X5 take the biggest cuts , X1 & 3 more symbolic . I think details will be out by tomorrow
Has BMW revised it's Pricing?
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Old 8th July 2015, 03:13   #110
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by #enzowho View Post
Has BMW revised it's Pricing?
What I hear is X5 by 4l, 530d by 2l, x3 and 3 by 1l. Can't say for sure, but I guess we'll know by next week.

Last edited by Gannu_1 : 8th July 2015 at 09:09. Reason: Typo.
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Old 8th July 2015, 07:08   #111
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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What I hear is X5 by 4l, 530d by 2l, x3 and 3 by 1l. Can't say for sure, but I guess we'll know by next week
Yes , X5 by around 4 Lac , 5 series & X3 by 3 Lac & 3 series around 1 Lac . However as of now BMW dealers will withdraw past offers . Given the way they work I doubt they will continue without discounts for much longer so all in all BMW's are going to be cheaper

Last edited by Gannu_1 : 8th July 2015 at 09:09. Reason: Quoted post edited.
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Old 12th July 2015, 22:02   #112
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

Given the aggressive media campaign BMW has started with the 'Make in India' tagline, aren't the price cuts a bit mellow? Last time I checked, a top of the line 3-er would retail around 46-47L. I'm no expert, but a reduction of 1 Lac is underwhelming to say the least.
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Old 14th July 2015, 08:17   #113
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

Both BMW and MB claim 50% localization, and then reduce the prices by a lac or two. Most of these cars are offered with some discounts anyway, so it is possible that the OTR price may not change at all.

The general excuse that it is thanks to the import duties, doesn't sound convincing if 50% of the car is sourced locally.

So what does 50% refer to? 50% of value? 50% of parts, 50% of weight?

I suppose most buyers of these cars want to just show-off, and the big brands are laughing their way to the banks with the money. My cousin recently told me he won't be caught dead in a VW Jetta, and he'd rather pay whatever for an Audi. I told him to consider it as a better value than the A3.

Saw an interview with the new VW Marketing head recently on TV. Guy says, we make premium cars, so we cannot be in 50% of the Indian car market. Conveniently forgetting that cheaper cars are now better equipped than most of his "premium" offerings. The Passat, (Yeti) Phaeton, Touareg are examples of good cars failing becus of overpricing, yet they don't seem to learn the lesson.
Now they are planning to introduce an even more expensive Passat, a subcompact Tiguan that will be more expensive than the Fortuner(overpriced in itself), and at 35lac Beetle. How on earth will this improve their market share? These executives seem to be living in a bubble. Or as it has been said, maybe it is because their jobs depend on them believing their own stories.

Unless the consumers (and opinion-shaping auto mags) start calling them out for being over priced, we will continue with this price-gouging regime.
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Old 15th July 2015, 14:09   #114
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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No one can afford to be greedy in a competitive market.
If Toyota is able to raise prices, more and more customers are ALSO willing buy at higher prices. THUS the prevailing price.

I don't understand when people will get over the communist days of calculating costs and placing a markup to arrive at regulated price.

Doesn't happen that ways.
Price depends on seller's appetite of selling vs holding inventory. If customers don't like the prices, seller will be forced to cut prices.
If customers lap up the products with high prices (Apple is a great example), the seller has an option to raise prices further and keep same volume or keep the same price and increase volume.

In case the cost works out to be greater than the desired price, you go back to meeting rooms and discuss ways to reduce the flab.
Bang On!.

The purchasing power, inflation, everything has increased over the years, so why blame only the German Cars.
If they can sell by still asking for obnoxious amounts of money, where's the harm. They have their own way of improving their Sales reports/sheets.

Also, why are we only talking about the Germans.

Its the practice which has been followed by everyone, including the Japs, Koreans , Czechs as well. The entire segments have shifted one above.

Have a look at how the segment of Corolla, Elantra, Octavia have shifted. They are costing more than 50% more than a decade back.

1. Elantra is selling in a price range where Sonata used to be . Also its price and Sonata's was so close before Sonata was phased out.
2. Corolla is near to what Camry used to cost a decade back
3. Octavia is the same fate

We are comparing the cost being almost same in the sub 10 lacs segment, which IMO would be wrong as its the most price sensitive segment. even 15-20k here and there, makes or breaks the deal in that Price range.

So, our Indian mindset have evolved with more money in our purse over the years. So, if 10 years back we would see Octavias or Corollas as must haves, today, if we have the money to own them, we go ahead and buy.

Same is the case with the German brands.

Quote:
Originally Posted by Turbanator View Post
Yes , X5 by around 4 Lac , 5 series & X3 by 3 Lac & 3 series around 1 Lac . However as of now BMW dealers will withdraw past offers . Given the way they work I doubt they will continue without discounts for much longer so all in all BMW's are going to be cheaper
Buddy, everyone knows the localisation started some years back.
Then why Full page ads now of "Make In India"?

Simply because, the Modi Govt is pushing the agenda and they want to ride on the news in the papers that "Look, we are doing it the way the govt is asking us to do"

So its not pleasing the customers.
Its pleasing the govt, even if that means making less profit on the "Loose change" they offer on the products, which they were any which ways giving through back door discounts.

Let us try to ask for similar discounts now after the price reductions in BMW.
I am sure there will be no shocks there.
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Old 15th July 2015, 14:44   #115
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

Luxury products do not get impacted by inflation or purchasing power. Luxury products (be it any segment / industry) don't come in line of the regular demand / price equation that we have studied. Its the opposite and the manufacturers of luxury cars need to keep alive the aspirational value that their products hold. Its a big challenge for them to not kill their products by lowering their prices. Even if these cars are made in the cheapest locations on earth, the price gap between them and the regular makes has to be maintained for them to run long term.

Yes, these 3 along with jaguar and plus many more to come are insanely priced. But that's how the consumers want them. Not common man like me; instead the ones who want to be differentiated from the rest; the ones who are truly the real consumers of luxury products.

Last edited by Accent Martin : 15th July 2015 at 14:47.
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Old 15th July 2015, 21:50   #116
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Originally Posted by dhall_gagan View Post
Bang On!.



The purchasing power, inflation, everything has increased over the years, so why blame only the German Cars.

If they can sell by still asking for obnoxious amounts of money, where's the harm. They have their own way of improving their Sales reports/sheets.



Also, why are we only talking about the Germans.



Its the practice which has been followed by everyone, including the Japs, Koreans , Czechs as well. The entire segments have shifted one above.



Have a look at how the segment of Corolla, Elantra, Octavia have shifted. They are costing more than 50% more than a decade back.



1. Elantra is selling in a price range where Sonata used to be . Also its price and Sonata's was so close before Sonata was phased out.

2. Corolla is near to what Camry used to cost a decade back

3. Octavia is the same fate



We are comparing the cost being almost same in the sub 10 lacs segment, which IMO would be wrong as its the most price sensitive segment. even 15-20k here and there, makes or breaks the deal in that Price range.



So, our Indian mindset have evolved with more money in our purse over the years. So, if 10 years back we would see Octavias or Corollas as must haves, today, if we have the money to own them, we go ahead and buy.



Same is the case with the German brands.







Buddy, everyone knows the localisation started some years back.

Then why Full page ads now of "Make In India"?



Simply because, the Modi Govt is pushing the agenda and they want to ride on the news in the papers that "Look, we are doing it the way the govt is asking us to do"



So its not pleasing the customers.

Its pleasing the govt, even if that means making less profit on the "Loose change" they offer on the products, which they were any which ways giving through back door discounts.



Let us try to ask for similar discounts now after the price reductions in BMW.

I am sure there will be no shocks there.

I think the simple difference is that the japs and Koreans aren't offering 10-20% discounts right off the shelf. They're increasing prices because of cost increases and because they can.
The Germans can't yet they wanna look like they just did.
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Old 16th July 2015, 09:46   #117
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by Accent Martin View Post
Luxury products do not get impacted by inflation or purchasing power. Luxury products (be it any segment / industry) don't come in line of the regular demand / price equation that we have studied. Its the opposite and the manufacturers of luxury cars need to keep alive the aspirational value that their products hold. Its a big challenge for them to not kill their products by lowering their prices. Even if these cars are made in the cheapest locations on earth, the price gap between them and the regular makes has to be maintained for them to run long term.

Yes, these 3 along with jaguar and plus many more to come are insanely priced. But that's how the consumers want them. Not common man like me; instead the ones who want to be differentiated from the rest; the ones who are truly the real consumers of luxury products.
You have contradicted your own statement my friend.

the people who want to be differentiated from the rest are the ones whose purchasing power has increased over the years. Very easy to assess that as the number of millionaires have increased exponentially.

Just a small link on that:

http://www.indiaincorporated.com/ind...de-report.html

No doubt that the prices of many products are insanely priced, but its because their target audience is not us.
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Old 16th July 2015, 09:49   #118
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by Bluebeem View Post
I think the simple difference is that the japs and Koreans aren't offering 10-20% discounts right off the shelf. They're increasing prices because of cost increases and because they can.
The Germans can't yet they wanna look like they just did.
Increasing the cost of elantra/corolla/octy by 6-8 lacs is not 10-20% increase. If you take the %age, its the same as the germans i.e. 50-60% over the years and in some case almost 100%.
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Old 16th July 2015, 09:58   #119
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Originally Posted by dhall_gagan View Post
Increasing the cost of elantra/corolla/octy by 6-8 lacs is not 10-20% increase. If you take the %age, its the same as the germans i.e. 50-60% over the years and in some case almost 100%.

Check again buddy. I said the discounts are 10-20%. Not price increases.
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Old 16th July 2015, 10:17   #120
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Default Re: The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi

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Originally Posted by dhall_gagan View Post
You have contradicted your own statement my friend.

the people who want to be differentiated from the rest are the ones whose purchasing power has increased over the years. Very easy to assess that as the number of millionaires have increased exponentially.

No doubt that the prices of many products are insanely priced, but its because their target audience is not us.
I think I failed miserably in simplifying my point

What I wanted to say was unlike the regular goods where demand increases basis drop in price or demand falls basis rise in price, there are few products that are exempted from this law of demand theory.

link - https://en.wikipedia.org/wiki/Veblen_good

To conclude, non luxury cars - less price, more demand and more price, less demand
Luxury cars - More price, more demand.
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