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Old 8th December 2005, 15:16   #1
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Default Car Prices In India Compared To States

What makes car prices so high in india compared to usa? why are the prices double the price of states?
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Old 8th December 2005, 15:19   #2
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It is mainly due to the various taxes. Almost 50% of what we pay is due to direct or indirect taxes, which is not so high in other nations.
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Old 8th December 2005, 17:45   #3
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Our govt. thinks that car is a luxury item only for riches! That's why they levy such high rate of taxes.

Not only cars, every electronic item (camcorder, laptop, digital camera etc.) are cheaper in Europe/America. Surprisingly, even some clothing and food items (ice creams, chocolates, cakes, juice etc) are also cheaper abroad (in absolute monetary terms not just by purchansing power parity).

All these because of our govt's wrong(!) taxation policy.

But insurance is much dearer outside India (sometimes costing more than the value of car).

There has been similar threads on this topic in this forum recently.

Last edited by sbasak : 8th December 2005 at 17:47.
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Old 8th December 2005, 17:46   #4
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Quote:
Originally Posted by Sumed
It is mainly due to the various taxes. Almost 50% of what we pay is due to direct or indirect taxes, which is not so high in other nations.
True but its not only india if you see the UK market the car prices are expensive but what makes me sad is we pay the double of amount. My friend from california he was like totally shock when he came to know the car prices and yeah the petrol prices.
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Old 8th December 2005, 19:40   #5
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the 106% tax is the reason cars are so expensive here in india.
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Old 8th December 2005, 22:04   #6
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105% for new ones, and 100% for used vehicles. This means u'll be paying the money of two just to get on car/bike
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Old 9th December 2005, 14:16   #7
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On this topic, if I import a used car into india, does anyone know on what basis they will charge the 100% import tax on the used car? Will it be on the current purchase price (depreciated value) or on the original purchase price of that used car (when it was new)?
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Old 9th December 2005, 15:37   #8
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Yes its true we not just pay high amount of money for cars but also clothes/chocoltes/electronic gadgets etc etc. So what makes indian economy strong? we fools who pay high amount of money. Its considered that the indian market is one of the best market for sellers cause there are buyers in india for each and everything. The govt should utilise this power of indian people rather than making the stuff at a high amount just because the market holds the name in the world.

This is really disgusting, this cannot only improve our lifestyle but also a middle class person can think to buy an accord and that will not only boost the lifestyle of a middle class person but also there will be boost in indian economy and the poverty line can go down too. I dont think we have ever thought like this before?
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Old 9th December 2005, 15:43   #9
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Quote:
Originally Posted by IndianDawg

This is really disgusting, this cannot only improve our lifestyle but also a middle class person can think to buy an accord and that will not only boost the lifestyle of a middle class person but also there will be boost in indian economy and the poverty line can go down too. I dont think we have ever thought like this before?
Well said. However I am sure this trend of thought has been discussed by economists. Its just that change in government policy will take years (if not decades), like everything else the government does.
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Old 9th December 2005, 16:04   #10
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Some of these taxes have come down in last few years... hope the same thing continues and we see these taxes lowered.

In a similar manner, our income tax has come down drastically... there was a time that the highest tax bracket was 96% !!!
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Old 9th December 2005, 17:33   #11
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Quote:
Originally Posted by Sumed
there was a time that the highest tax bracket was 96% !!!
Is that accurate ?!? 96% ?!?
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Old 9th December 2005, 17:50   #12
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Quote:
Originally Posted by idnani
On this topic, if I import a used car into india, does anyone know on what basis they will charge the 100% import tax on the used car? Will it be on the current purchase price (depreciated value) or on the original purchase price of that used car (when it was new)?
Last time I inquired, the total duty rates for second hand/old cars was higher than that for brand new.

However, the twist there was that old/second hand cars are subject to valuation - which is where money changes hands to value cars conveniently. For eg. a Merc C200 (year 2000) that was imported from the UK was valued at Rs.2 lakhs and the customs duty for the same was 2 lakhs. However, if it were a NEW C200 the duty would be lower, but calculated against ACTUAL INVOICE from the Authorized Distributor or Manufacturer in the country from which the vehicle was exported - thus the lower duty rates tend to become quite useless.

There are some broad guidelines here (note that actual practice would differ from what is stated therein, depending on the amount you dole out):

Suresh Kaimal's Pages

NRIOL


Namasthe NRI
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Old 9th December 2005, 18:10   #13
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Thank you steeroid, very helpful.

I quote this from the article, and find it hilarious! "One Passenger Car with engine size not exceeding four cylinders and not exceeding 1600 C.C"

What happens those who want to import an SL65 AMG, which has a 6 liter V12 !?!
Thats 8 more cylinders and 4400 cc's more than allowed!
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