BMW to set up plant in India.

[lurker]

Originally Posted by kbk_75

Which CBU 3 series are you referring to? There is no way they can sell a 3 series for 25 lakhs at the moment. For starters, their cars are not homologated with the ARAI, so any car they sell here has to cost AT LEAST 40,000 USD and then you add on the 105% duty, octroi, registration, insurance, etc, so you are looking at prices in the range of approx. 45 Lakhs +

I posted a response for your post, but since edit function is disabled for newflies it seems as if the post got lost in cybergarbage. In short I calculated that BMW 3-series apprx cost 18,60,000 in the civilized world. In India with 60% import duty and with dollar computed at 43.50 around a few months ago, the apprx cost of BMW-3 series CBU would come to 26+ lakhs.

Secondly plz confirm if 40,000 USD price is inclusive of VAT or not because if a car is being manufactured for export then prices would be lower since no VAT would be charged in the country of origin. That VAT would itself come to 30% for cars in most 'civilized' countries would be supplanted by an import duty of 60% so the actual differenc even in case of import is just 30% !

At current dollar-rupee rates the cost of an import CBU comes to around 29,60,000 lakhs apprx.

SInce BMW is going the CKD route for its 3-series in INdia and since CKD attracts 25% import duty onlee. I wondered if it there was any chance it would price it below 20 lakhs at part with a Skoda Laura ! One can always wish can't they heheheh !

[kbk_75]

OK, let's handle those questions one by one:

1. The manufacturer's LIST price for the vehicle has to be USD 40,000/- or more to be imported without homologation. I believe the engine capacity has to be 3,000 cc or more as well. (In my opinion these arbitrary criteria were set just to appease the rich and famous who wanted to import such cars and also because no car in India at the time except for the Mercedes S class would have been affected by these criteria. According to the Govt. they were set as such because BIG cars abroad are bound to be safe enough for use here without testing them locally. Can you say BS? Even the smallest cars in Europe are safer than our so called mid-size vehicles like the Ikon, Accent, Esteem, etc)

2. You are taking import duty as 60%. You are not counting AD, SAD, CVD etc (whichever are applicable). The total duty on a new car comes to somewhere in the region of 105%, not 60%, so this alone is knocking your calculation WAAAAAY off.

3. The USD:Rupee exchange rate is closer to 46.50, not 43.50

4. Once again you are counting CKD duty rates as just the "basic" duty. You are not counting AD,SAD, CVD or whatever else they call it now.

5. No harm in wishing, but you are not going to get your hands on an E90 BMW for under 20 lakhs. You'll be lucky to get one for under 30 lakhs on-the-road. And if you did, it would probably be a very basic, stripped-out 318 or something like that.

[lurker]

Plz post more information on AD,SAD,CVD etc.

As per information available from open sources the pure Import duty is '15% on CKD and 'excise duty' is 10% adding together makes it 25%.

So unless you can come up with precise figures for Additional duty, 'Special Additional Duty' (I love GoI), and Countervailing Duty (leaves us wailing onlee) I will still grope around trying to enter the enlightened path that you want to show.

But what you say is possible since without the leather-bound dominatrix with her tools for torture in form of AD/SAD/CVD in place, the imported CBU will prove to be almost equal to an CKD+locat VAT !

[rahul_intlad]

Came across this:


http://www.carwale.com/Used/CarDetai...rom=&budgetTo=

[rahul_intlad]

It says make septmeber 2006 and has done 70,000kms already.Boy I love these second hand car ads.

[kbk_75]

Originally Posted by lurker

Plz post more information on AD,SAD,CVD etc.

As per information available from open sources the pure Import duty is '15% on CKD and 'excise duty' is 10% adding together makes it 25%.

So unless you can come up with precise figures for Additional duty, 'Special Additional Duty' (I love GoI), and Countervailing Duty (leaves us wailing onlee) I will still grope around trying to enter the enlightened path that you want to show.

But what you say is possible since without the leather-bound dominatrix with her tools for torture in form of AD/SAD/CVD in place, the imported CBU will prove to be almost equal to an CKD+locat VAT !

OK pal, go check out the customs website. It should have all the details you want. I'm through with going OT on this thread.

[Mpower]

BMW plant has broken ground in CHennai.

THREAD CLOSED