Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 17th July 2008, 13:44   #136
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,638 Times
Default

Forget the tax culture. For a moment think. If Hyundai had added the same kit levels and priced it higher, would anybody have bought it?
They are in the business of selling cars. So they have to price it at the level which most buyers would buy. Features like ABS and Airbags will be added to vehicles only through regulation, or demand
tsk1979 is offline   Reply With Quote
Old 17th July 2008, 14:09   #137
BHPian
 
Su-47's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 623
Thanked: 91 Times
Default

Am surprised to see no testdrive reports yet (i.e. if we leave out the not so informative straight from heart one). Here in bangalore, I called Advaith and they said they have the car but can't give testdrives unless it is registered.
Su-47 is offline   Reply With Quote
Old 17th July 2008, 14:58   #138
Senior - BHPian
 
StarScream's Avatar
 
Join Date: Nov 2007
Location: Noida/Delhi
Posts: 1,247
Thanked: 633 Times
Default

Quote:
Originally Posted by bimi View Post
Oh Tron. this is a completely wrong statement. There is no separate line for the Indian operation & for export production. I have been to their factory recently and I have seen the cars been made in the same line. They encourage a lot of visitors to visit their factory nowadays especially if you are a corporate employee.
That's true. Hyundai's export and India models are built on the same assembly line. I've seen the factory as well - that was before the i10 was launched - and UK Santros with a different feature set were being built right along cars for the Indian market.
One thing we have to be thankful for - since Hyundai makes these cars in India for the global market, the features offered elsewhere trickle down to us. The AT gearbox and the ABS option on the Santro are examples. It didnt take a lot for Hyundai to offer those features in India because it was already making cars with them for export. If Hyundai had an India specific operation, Im pretty sure we wouldn't have got those options.
StarScream is offline   Reply With Quote
Old 17th July 2008, 15:57   #139
BHPian
 
Join Date: Feb 2008
Location: New York
Posts: 67
Thanked: 3 Times
Default

The lowest trim level of UK i10 (with 1.1l engine) is sold for GBP. 6745 on road. That's Rs. 5,78,525. The VAT (UK sales tax) is 17.5%. So, the pre-tax price of this car is Rs. 4,77,283. This has better kit than the old Magna (O) without runsoof.

The Indian Magna (O) (solid paint, no sunroof, 1.1l engine) costs Rs.4,69,776 (without taxes) in Chennai. Assuming the road tax and registration fee are comparable, for an extra Rs. 7,500, the UK model gets these extra features:
- side airbags
- immobiliser
- 14" alloy wheels
- adjustable headrests (front)
- headrests for all three rear set passengers
- child seat anchors in rear seat

This is ridiculous considering the Indian car often carries three passengers on the rear seat compared to the UK, and you have more accidents in India than the UK, hence you *NEED* better safety features in India than the UK.

Now, I'm not even considering the shipping costs of the UK Spec car from Chennai to London, and the road tax and registration fee that's included in the cost of the UK model. If you deduct these cost too, the UK car will cost less than the Indian car. If they sell a better car for less money in the UK, and they sell more cars in India than the UK, why not sell the better cars in India too?

This is not a question of costs and taxes, this is purely a question of automobile manufacturers (not just Hyundai) neglecting Indian customers.

Last edited by Tron : 17th July 2008 at 16:10.
Tron is offline   Reply With Quote
Old 17th July 2008, 16:07   #140
BHPian
 
bullboy's Avatar
 
Join Date: Sep 2006
Location: Trivandrum
Posts: 577
Thanked: 35 Times
Default

top whack of only 125 kph and 110 ?
bullboy is offline   Reply With Quote
Old 17th July 2008, 16:39   #141
BHPian
 
Join Date: Feb 2008
Location: New York
Posts: 67
Thanked: 3 Times
Default

Oh, by the way, when I said two assembly lines, I did not mean two physical assembly lines as much as I meant two different assembly processes (batches, manufacturing lines, what have you).
Tron is offline   Reply With Quote
Old 17th July 2008, 16:40   #142
BHPian
 
Join Date: Apr 2008
Location: Gurgaon
Posts: 293
Thanked: 43 Times
Default

Tron, you have a point here - and it confirms the fact that Hyundai has overpriced the i10. Even HS Lheem had stated in some article (don't remember where I read it) that Hyundai makes better profits on cars that are sold in India rather than abroad. However there's one more point being missed here - import duty on items which are not manufactured in India is tremendous. So the ABS and the Airbags (along with any other components that are still not manufactured here) would cost quite a bit if they sell the car in India. Also, if you export the same car, you can avail of low (I think zero, not sure) duties on the same components. This is the reasoning that in the same price, the UK spec car can accomodate more features.
reppy is offline   Reply With Quote
Old 17th July 2008, 16:45   #143
BHPian
 
anandtheleo's Avatar
 
Join Date: Jan 2007
Location: Chennai
Posts: 351
Thanked: 176 Times
Default

Quote:
Originally Posted by reppy View Post
Tron, you have a point here - and it confirms the fact that Hyundai has overpriced the i10. Even HS Lheem had stated in some article (don't remember where I read it) that Hyundai makes better profits on cars that are sold in India rather than abroad. However there's one more point being missed here - import duty on items which are not manufactured in India is tremendous. So the ABS and the Airbags (along with any other components that are still not manufactured here) would cost quite a bit if they sell the car in India. Also, if you export the same car, you can avail of low (I think zero, not sure) duties on the same components. This is the reasoning that in the same price, the UK spec car can accomodate more features.
The ABS kit in my car, i10 is by Mando, and is manufactured in India I guess.
anandtheleo is offline   Reply With Quote
Old 17th July 2008, 17:38   #144
BHPian
 
appuchan's Avatar
 
Join Date: Jan 2006
Location: Bangy
Posts: 641
Thanked: 16 Times
Default

Quote:
Originally Posted by extreme_torque View Post
The article is hilarious! Seems as if its written by a teenager still trying his hands at writing and knows nothing about a car. It not even enjoyable to read.
True, especially the quote

Quote:
...Coming to the i10 Asta Automatic, put the lever in D-mode and just press the accelerator pedal, the 4-speed auto box takes care of everything...
Isn't this what an Auto is all about? Looks like he is driving an auto tranny for the first time.
appuchan is offline   Reply With Quote
Old 17th July 2008, 18:07   #145
BHPian
 
Join Date: Feb 2008
Location: New York
Posts: 67
Thanked: 3 Times
Default

Quote:
Originally Posted by Tron View Post
The lowest trim level of UK i10 (with 1.1l engine) is sold for GBP. 6745 on road. That's Rs. 5,78,525. The VAT (UK sales tax) is 17.5%. So, the pre-tax price of this car is Rs. 4,77,283. This has better kit than the old Magna (O) without runsoof.

The Indian Magna (O) (solid paint, no sunroof, 1.1l engine) costs Rs.4,69,776 (without taxes) in Chennai. Assuming the road tax and registration fee are comparable, for an extra Rs. 7,500, the UK model gets these extra features:
- side airbags
- immobiliser
- 14" alloy wheels
- adjustable headrests (front)
- headrests for all three rear set passengers
- child seat anchors in rear seat

This is ridiculous considering the Indian car often carries three passengers on the rear seat compared to the UK, and you have more accidents in India than the UK, hence you *NEED* better safety features in India than the UK.

Now, I'm not even considering the shipping costs of the UK Spec car from Chennai to London, and the road tax and registration fee that's included in the cost of the UK model. If you deduct these cost too, the UK car will cost less than the Indian car. If they sell a better car for less money in the UK, and they sell more cars in India than the UK, why not sell the better cars in India too?

This is not a question of costs and taxes, this is purely a question of automobile manufacturers (not just Hyundai) neglecting Indian customers.
Sorry for quoting my own post. I just found this page on the Hyundai UK website which says that the base retail price for the model I used for comparison above is GBP. 5,308. This translates into Rs. 4,56,056 (today's exchange rate from xe.com: GBP 1 = INR 85.91).

Excluding all taxes, a much better car in the UK (i10 Classic 1.1l engine, Rs. 4,56,056) costs much less than the closest Indian model (i10 Magna-O 1.1l engine, Rs. 4,69,776) despite having much better features and the shipping costs from Chennai to the UK. These two cars are designed and manufactured in the same factory at the same time in Chennai.

As an icing on the cake, the Indian i10 comes with 2 year standard warranty (please correct me if they've improved this), but the UK model comes with 5 year standard warranty.

Draw your own conclusions.

PS. Please do not think I'm singling Hyundai out. All multinational automakers in India do the same thing.

Last edited by Tron : 17th July 2008 at 18:15.
Tron is offline   Reply With Quote
Old 17th July 2008, 19:27   #146
BHPian
 
jassi's Avatar
 
Join Date: Jun 2007
Location: Melbourne
Posts: 980
Thanked: 11 Times
Thumbs down

car manufacturers are sitting on a cash cow - might as well milk it while it lasts
jassi is offline   Reply With Quote
Old 17th July 2008, 20:28   #147
BHPian
 
Join Date: Sep 2007
Location: NA
Posts: 769
Thanked: 48 Times
Default

Ex-showroom price already has some taxes such as excise duty of 16%? Some tax while transfering from state to state, blah blah. On top of that government discourages imports and thus imported cars cannot give any competition to localized ones, leading to some easy pricing for the local manufacturers.
opendro is offline   Reply With Quote
Old 17th July 2008, 21:04   #148
BHPian
 
Join Date: Feb 2008
Location: New York
Posts: 67
Thanked: 3 Times
Default

Quote:
Originally Posted by opendro View Post
Ex-showroom price already has some taxes such as excise duty of 16%? Some tax while transfering from state to state, blah blah. On top of that government discourages imports and thus imported cars cannot give any competition to localized ones, leading to some easy pricing for the local manufacturers.
Even locally made cars have to pay excise on top of the VAT? I thought the VAT was meant to replace all of that, isn't it?
Tron is offline   Reply With Quote
Old 17th July 2008, 22:31   #149
BHPian
 
Join Date: Dec 2006
Location: Delhi
Posts: 477
Thanked: 24 Times
Default Another 1.2 test drive report

The i10 has always been a popular car, and now it has got better with the introduction of a new engine, the 1.2 litre Kappa motor whose base model’s price is Rs 3.99 lakh, ex-showroom, Delhi. We got our hands on the car, including the automatic, for a driving impression.
The facts first: the new engine is an all-aluminium, DOHC, 16-valve unit that produces 80bhp@5200rpm, 11.4kgm@4000rpm, and is redlined at 6500rpm. It has a lubricated timing chain, offset crank, and spark plugs that have been lengthened from 19mm to 26.5mm. The valves incorporate hydraulic lash adjustors. Other innovations include the lack of a fuel return line that helps save fuel by eliminating evaporation, and fuel injectors whose pulsing can be varied, depending on the requirements of the moment – warming up, power, or normal driving. The i10 automatic will also be available with a four-speed transmission
HMIL let us sample the cars on the East Coast Road from Chennai to Pondicherry. The Kappa motor is remarkably eager to rev, and those who’d like a little fun every now and then with their i10 will appreciate this the most. There is enough overtaking power now even for the highway, with second and third gears showing 80kph and 140kph on the speedo. The aluminium construction has made the engine lighter by 3kg – so the good ride and handling of the old model remain. The automatic is probably the best small car for city traffic at the moment – it is very responsive at city speeds, and will allow you to dart into the little spaces at traffic jams without you having to exercise your left leg at all.
What was pleasantly surprising was the absence of badges on the engine cover – we are so used to manufacturers shouting “DOHC!” from the rooftops, that the small ‘Kappa’ badge just ahead of the right door and the ‘1.2’ badge on the hatch make the new i10 an almost-sleeper. Looks like Hyundai are taking ‘subtle’ in a very serious way; look at the 2008 Sonata Embera, for instance. The i10’s performance has got better, as has the power rating, but fuel consumption is expected to be 4-5% lower than the Epsilon. The Kappa is ready to meet Euro V regulations. In its current form, it meets Euro lV norms and emits 119g of CO2 per km. HMIL have spent US$230 million on a new engine plant to manufacture the Kappa motor, as it will be used in export models as well.
The Kappa motor will not make it into the Getz, which will make way for the i20 hatchback by the end of this year. There are no plans at the moment to introduce the diesel i10 right away, but if research indicates that it will be well received and if HMIL manages a high amount of local content, then it will be launched in India as well.
The i10 Kappa lineup will start at Rs 3.99 lakh (ex-showroom Delhi) for the Magna manual, which will not have the 1.1 as an engine option any more. The 1.1l engine will still do duty under the hoods of the Era and D-Lite, but the new variants, the Magna, the Sportz and the Asta will have the Kappa motor. The Asta with sunroof is the top-end variant, at Rs 5.43 lakh, ex-showroom Delhi.

Source: Hyundai i10 1.2 ‘Kappa’ driven CarWale.com Blog

Elito
Elito11 is offline   Reply With Quote
Old 17th July 2008, 23:13   #150
Senior - BHPian
 
aaggoswami's Avatar
 
Join Date: May 2007
Location: Vadodara
Posts: 4,674
Thanked: 1,426 Times
Default

Quote:
Originally Posted by Elito11 View Post

The facts first: the new engine is an all-aluminium, DOHC, 16-valve unit that produces 80bhp@5200rpm, 11.4kgm@4000rpm, and is redlined at 6500rpm.
The Hyundai official website mentions its 80 PS i.e equal to around 78.8 bhp.

Quote:
Originally Posted by Elito11 View Post

The i10’s performance has got better, as has the power rating, but fuel consumption is expected to be 4-5% lower than the Epsilon. The Kappa is ready to meet Euro V regulations. In its current form, it meets Euro lV norms and emits 119g of CO2 per km. HMIL have spent US$230 million on a new engine plant to manufacture the Kappa motor, as it will be used in export models as well.
4-5 % increase or decrease ? IIRC, I read the fuel efficiency will increase by 4-5 %.


Quote:
Originally Posted by Elito11 View Post

There are no plans at the moment to introduce the diesel i10 right away, but if research indicates that it will be well received and if HMIL manages a high amount of local content, then it will be launched in India as well.

I doubt these statements. They are coming up with diesel for sure.
aaggoswami is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hyundai Eon to get 1.0 liter Kappa Engine EDIT: Now launched (Page 3) mints21 The Indian Car Scene 52 14th December 2015 11:01
Aprilia RSV4 launched. Vespa brand to return in 2012! Edit - Vespa now launched CrAzY dRiVeR Superbikes & Imports 14 26th June 2015 10:52
Hyundai Xcent (Grand i10 Sedan) caught testing : Now launched @ Rs. 4.66 lakh CARDEEP The Indian Car Scene 263 7th April 2014 21:39
The soon to be launched facelifted Skoda Laura. EDIT : Now launched magikrider The Indian Car Scene 105 29th October 2009 01:08
Safari Common Rail Engine Launch? EDIT 010805 Now driven. Edit 190805 Now BOUGHT!!! Steeroid The Indian Car Scene 277 13th July 2009 23:14


All times are GMT +5.5. The time now is 05:51.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks