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Old 10th July 2009, 11:37   #1
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Default Effects of recession

Recession has affected the car sales in UAE. Last month, I saw a report from RTA (Roads & Transport Authority) stating that the number of car registrations have gone down.

Car dealers are giving discounts on various models. I guess the recession is beneficial to car buyers loaded with cash in hand. For others also, the car dealers are offering 'redundancy' protection.

Are the car manufacturers matching the prices/discounts in India. Or are they milking the Indians.

I have attached a few of the newspaper ads here in Dubai.
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Old 10th July 2009, 12:03   #2
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Great!! I hope the effect would be seen in Indian market as well.

The price looks tempting after converting to Indian Rupees. Indian government has made vehicles so expensive for us. Show some mercy on middle class in India!!
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Old 10th July 2009, 12:03   #3
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its true for people who have loads of cash now,can go full fire and get oen of these.
inspite knowing about taxes and cess and what not in India!! i was just thinking,they sell these cars real cheap abroad!!
im sure we would have had more buyers in India than the gulf if by any chance(which is close to impossibility) that they sell these 4 wheelers at these prices here!!
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Old 10th July 2009, 12:08   #4
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I am not sure if they should be offering huge discounts. If they know people have money with them, then why offer discounts ? Don't know whether it make good economic sense.
OR
If one manufacturer starts then the others are forced to follow I guess.
Anyways, if the customers (we) are benefitting, who's complaining ?
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Old 10th July 2009, 12:11   #5
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1.00 AED = 13.1015 INR

Makes Indian car feel so damn expensive.
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Old 10th July 2009, 12:22   #6
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AED 33k discount on a new gen Pajero?? Man...
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Old 10th July 2009, 12:23   #7
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Quote:
Originally Posted by bblost View Post
1.00 AED = 13.1015 INR

Makes Indian car feel so damn expensive.
Yep, Corrolla sport costs INR6.61 Lakh ex-showroom, if converted. About 3L cheaper than indian variant!!
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Old 10th July 2009, 14:18   #8
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Wow! Lets rush for eclipse. Its only for 10 lacs!
I always wanted this car ever since i played NFS undergound.
Indian govt should reduce the import duty. 106 %, is a little too much!!
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Old 10th July 2009, 18:56   #9
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Yes, killer deals available in some markets. I've seen $40,000 trucks go for $20,000 in the States, when gas prices shot through the roof.
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Old 10th July 2009, 20:31   #10
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If the import duty is "106%" and "1.00 AED = 13.1015 INR"
Pajero: Dhs. 87,900 => Rs. 23,72,341/-
Lancer: Dhs. 41,900 => Rs. 11,30,843/-
Corolla Sport: Dhs. 49,900 => Rs. 13,49,428/-
Camry Sport: Dhs. 64,999 => Rs. 17,54,264/-
Fortuner Sport: Dhs. 79,999 => Rs. 21,59,100
Prado Sport: Dhs. 99,999 => Rs. 26,98,882/-

That means cars like lancer and corolla have undergone localisation and are not paying the full import duty.

If the Indian price of corolla is 10 lakh, they are having a import duty benefit of 3.5 lacs.
The Dhs. 49,999/- directly translates into Rs. 6.55 lacs (without import duty). The difference of 3.45 lacs must be other taxes, operational costs and profits. Can anyone shed light onto this.

Whereas Pajero is charging the Indians way more that it is worth, even with a diesel engine.

PS: All prices are for the petrol models.
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Old 3rd November 2009, 16:22   #11
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The prices look ah so delicious on converting them to INR.

Why the heck are we laden with so much taxes that most of the dream cars remains a dream :-(
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Old 12th July 2012, 14:01   #12
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Default Re: Effects of recession

PSA will close Aulnay - a french plant!

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PSA/Peugeot-Citroen today said it will close its Aulnay factory near Paris and reduce output at its plant in Rennes, France, as it struggles with mounting losses at its core automotive division.
Quote:
PSA's automotive division will report a first-half operating loss of 700 million euros ($857 million), the company said. The carmaker, which has been burning about 200 million euros in cash monthly since the middle of last year, aims to reach an operating cash-flow breakeven by the end of next year
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Aulnay employs more than 3,000 workers and will halt production in 2014
Cheers!
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