Protectionism, Indian Car Pricing, Development Economics etc - Page 10 - Team-BHP

extreme_torque · 1st May 2008, 12:38

Quote:

Originally Posted by SLK

80-100%???... MODVAT/CENVAT (is Excise) is 16.48%... Roadtax is not more than 4% (in Delhi). ... VAT/Sales tax might just be 4% or so.

add to that some double taxation due to local VATs say 10%....

roughly totals upto... 35+%.... whats the rest?

obviously there must be taxes in US too!!

And the pure cost of manufacturing in India has to be less than US!

And if the component supplier to say TATA has already paid VAT on its supplies, TATA dont need to pay that again. The total taxes should not be more than 30% at the maximum and that is the total on the on-road price, not the ex-showroom price.

raul · 1st May 2008, 16:06

So that's 30% taxes in India? What about taxes in US, does anyone have an idea about the taxes a car manufacturer will have to pay there? Then we can isolate the tax issue and try to understand other costs.

The idea is not to slam car manufacturers in India, after all we all know about the difficulties and hidden costs of operating a business here, but if they are profiteering we should know that and if they are not we should have an understanding of why cars end up costing so much more here inspite of lower costs and the limited purchasing power that is a result of lower costs.

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1st May 2008, 16:06	#137 (permalink)
raul BHPian Join Date: Jul 2004 Location: Pune Posts: 209	So that's 30% taxes in India? What about taxes in US, does anyone have an idea about the taxes a car manufacturer will have to pay there? Then we can isolate the tax issue and try to understand other costs. The idea is not to slam car manufacturers in India, after all we all know about the difficulties and hidden costs of operating a business here, but if they are profiteering we should know that and if they are not we should have an understanding of why cars end up costing so much more here inspite of lower costs and the limited purchasing power that is a result of lower costs.