Why cars cost less in Delhi ? - Team-BHP

mithun · 4th September 2006, 06:38

I'm wondering why A-segment cars costs about Rs.20,000 less and the luxury cars are cheaper by lakhs in Delhi. Why this much cost difference when compared to the rest of India ?

Delhi is no longer an Union territory and VAT is also implemented there(I assume so). And the car production factories are mainly concentrated in Tamil Nadu and still cars in Delhi are cheaper when compared to India's "Detroit" !!!

Is it because Delhi Govt. is giving massive subsidies to the citizens to procure cars so that our own Indian Govt. can flaunt our national capital ???

damodar · 4th September 2006, 09:46

The road tax in delhi is less compared to other places,for example car costing less than 4 laks are charged 5000 flat as life tax where as in hyderabad we are paying 9% of the ex-showroom cost that is 36000 as road tax.Like wise the for above 4 laks it is 4% of the ex showroom cost.So for a 10 lak car like Civic the difference 9-4 is 5% so there is a 50% cost difference from the rest of the country.I believe road tax is highest in Maharashtra and Karnataka with Mumbai coming on the tops with Octroi added

aZa · 4th September 2006, 13:40

Isn't haryana cheaper ?

kdb · 4th September 2006, 13:43

yes Haryana is cheaper .. and Chandigarh is cheaper than Haryana too .. Its a fixed amount u need to pay as Registration, road tax , etc.. that makes a 5.0 Lac+ vehicle 20-30K cheaper than delhi!

suman · 4th September 2006, 13:45

Quote:

Originally Posted by aZa

Isn't haryana cheaper ?

Very much so......the road tax is still a fixed amount and not a percentage of the car price as in Delhi

damodar · 4th September 2006, 15:05

Quote:

Originally Posted by kdb

yes Haryana is cheaper .. and Chandigarh is cheaper than Haryana too .. Its a fixed amount u need to pay as Registration, road tax , etc.. that makes a 5.0 Lac+ vehicle 20-30K cheaper than delhi!

what is the on road price of Swift LXI in chandigarh,here in hyderabad it is 4.54laks.

kbk_75 · 4th September 2006, 19:16

Yup no place like Mahara****ra to get ripped on buying a new car and then be given mine fields for roads to drive on. Especially in Bombay with the added octroi component.

hellspawn · 5th September 2006, 00:47

but who decides the road tax and why is it different for different states.my guess is that in the other states,since the infrastructure is state funded,the funds are low and hence road tax is higher to compensate for that.in case of delhi,its funded by the centre,hence it has more funds.
its a shot in the dark.these are only guesses on my part so feel free to comment.

GTO · 5th September 2006, 10:08

Is Delhi the cheapest? And Bangalore the most expensive?

suman · 5th September 2006, 10:36

Quote:

Originally Posted by GTO

Is Delhi the cheapest? And Bangalore the most expensive?

Well, at the moment Haryana on-road prices are cheaper than Delhi, at least for Ford & Tata vehicles (the ones I've bought or checked out of late)....the road tax is the killer in Delhi

bhp · 5th September 2006, 14:23

Quote:

Originally Posted by GTO

And Bangalore the most expensive?

i think mumbai is the most expensive with octroi also here

hellspawn · 5th September 2006, 23:16

are you sure that haryana is the cheapest,i thought punjab was the cheapest.
though i also think himachal pradesh has the cheapest taxes,the reason why icml has opened a plant there for manufacturing the rhino.

iraghava · 6th September 2006, 01:52

Quote:

Originally Posted by hellspawn

are you sure that haryana is the cheapest,i thought punjab was the cheapest.
though i also think himachal pradesh has the cheapest taxes,the reason why icml has opened a plant there for manufacturing the rhino.

Opening a plant usually has no co-relation to the on-road cost of the vehicle. If that was true no companies would have their manufacturing plants in Maharasthra. Opening a plant depends on various factors like Infrastructure, Tax benefits, Investment benefits etc. ICML has opened a plant in HP mainly beacuse of the tax-sops & other benefits being offered by the state.

And I think the cheapest state is still either HP/Punjab or Haryana. UP & Delhi used to be cheap but now they have moved on to a percentage system for calculation of taxes and thus have become much more expensive.

mithun · 6th September 2006, 05:16

Quote:

my guess is that in the other states,since the infrastructure is state funded,the funds are low and hence road tax is higher to compensate for that.in case of delhi,its funded by the centre,hence it has more funds.

But Delhi is a state and it has it's own legislative assembly for governance!!!

urdudesamy · 6th September 2006, 18:14

It's becasue all states which have higher road tax, wanted the rich people to pay for taxes.
So, they taxed cars heavily then they hit them with road tax.

Bingo, you have an expensive car.

Last but the least the fuel surcharge. So your petorl is also expensive. Simple...

Different ways to rip people off their money.

I don't think delhi have center funding it. It has its own funds etc. Operates like any other state.

Last but not the least there are no subsidies, It's just other states are ripping us off our money.

Ciao
Samy

4th September 2006, 06:38	#1 (permalink)
mithun Senior - BHPian Join Date: Jan 2006 Location: Cochin/Bangalore Posts: 1,065 View My Garage	Why cars cost less in Delhi ? I'm wondering why A-segment cars costs about Rs.20,000 less and the luxury cars are cheaper by lakhs in Delhi. Why this much cost difference when compared to the rest of India ? Delhi is no longer an Union territory and VAT is also implemented there(I assume so). And the car production factories are mainly concentrated in Tamil Nadu and still cars in Delhi are cheaper when compared to India's "Detroit" !!! Is it because Delhi Govt. is giving massive subsidies to the citizens to procure cars so that our own Indian Govt. can flaunt our national capital ??? __________________ Hold fast to dreams, for if dreams dry, life is a broken-winged bird that cannot fly.

4th September 2006, 09:46	#2 (permalink)
damodar Newbie Join Date: Nov 2004 Location: HYDERABAD Posts: 13	The road tax in delhi is less compared to other places,for example car costing less than 4 laks are charged 5000 flat as life tax where as in hyderabad we are paying 9% of the ex-showroom cost that is 36000 as road tax.Like wise the for above 4 laks it is 4% of the ex showroom cost.So for a 10 lak car like Civic the difference 9-4 is 5% so there is a 50% cost difference from the rest of the country.I believe road tax is highest in Maharashtra and Karnataka with Mumbai coming on the tops with Octroi added __________________ DAMODAR

4th September 2006, 13:40	#3 (permalink)
aZa Senior - BHPian Join Date: Mar 2006 Location: Noida / Delhi Posts: 1,164 View My Garage	Isn't haryana cheaper ? __________________ -[ " If the ride is more fly, then you must buy. " - Snoop Dogg ]-

4th September 2006, 13:43	#4 (permalink)
kdb Newbie Join Date: May 2006 Location: New Delhi Posts: 36	yes Haryana is cheaper .. and Chandigarh is cheaper than Haryana too .. Its a fixed amount u need to pay as Registration, road tax , etc.. that makes a 5.0 Lac+ vehicle 20-30K cheaper than delhi! __________________ *The first myth of management is that it exists. The second myth of management is that success equals skill*

5th September 2006, 00:47	#8 (permalink)
hellspawn Senior - BHPian Join Date: Jul 2005 Location: noida Posts: 1,489 View My Garage	but who decides the road tax and why is it different for different states.my guess is that in the other states,since the infrastructure is state funded,the funds are low and hence road tax is higher to compensate for that.in case of delhi,its funded by the centre,hence it has more funds. its a shot in the dark.these are only guesses on my part so feel free to comment. __________________ Kenwood KDC-MP6539,Image Dynamics Q450.4,Image Dynamics CTX65cs,IDQ15

4th September 2006, 19:16	#7 (permalink)
kbk_75 BHPian Join Date: Jan 2005 Location: Bombay Posts: 596	Yup no place like Mahara****ra to get ripped on buying a new car and then be given mine fields for roads to drive on. Especially in Bombay with the added octroi component.

5th September 2006, 10:08	#9 (permalink)
GTO Super-Admin Join Date: Feb 2004 Location: Bombay Posts: 12,202 View My Garage	Is Delhi the cheapest? And Bangalore the most expensive? __________________ GTO Change the way you think, and watch the world change around you. Please don't PM for support. Use the Contact Form instead. Please read the NEW Team-BHP FAQ section for all your queries.

5th September 2006, 23:16	#12 (permalink)
hellspawn Senior - BHPian Join Date: Jul 2005 Location: noida Posts: 1,489 View My Garage	are you sure that haryana is the cheapest,i thought punjab was the cheapest. though i also think himachal pradesh has the cheapest taxes,the reason why icml has opened a plant there for manufacturing the rhino. __________________ Kenwood KDC-MP6539,Image Dynamics Q450.4,Image Dynamics CTX65cs,IDQ15

6th September 2006, 18:14	#15 (permalink)
urdudesamy BHPian Join Date: Sep 2005 Location: Bangalore Posts: 50	It's becasue all states which have higher road tax, wanted the rich people to pay for taxes. So, they taxed cars heavily then they hit them with road tax. Bingo, you have an expensive car. Last but the least the fuel surcharge. So your petorl is also expensive. Simple... Different ways to rip people off their money. I don't think delhi have center funding it. It has its own funds etc. Operates like any other state. Last but not the least there are no subsidies, It's just other states are ripping us off our money. Ciao Samy

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Maruti Cars to cost more	deepak_ms	The Indian Car Scene!!	10	27th December 2007 04:30
Cars to cost more ...	msdivy	The Indian Car Scene!!	71	19th June 2007 10:09
Cars gonna cost a bomb in Maharashtra in the next Financial year	EVO6	The Indian Car Scene!!	7	25th March 2006 19:34
Small cars to cost less	goldie_malhotra	The Indian Car Scene!!	37	4th March 2006 10:07
Why do German cars cost more than their Japanese counterparts?	v12	The International Automotive Scene	0	5th March 2005 13:02