A little help with pricing please

_Crazi4Speed_ · 20th July 2004, 03:14

Hi, I just want to know a little breakdown of the pricing of automobiles in india?

I am not very familiar with the whole process and itemization..I only know that the car came and sat in front of the house..Never thought to figure it out..

Does the registration differ with the cost of the car? what percentage is registration, octroi, insurance usually? Or is there a fixed amount?

Thanks for all your help.

Cheers

GTO · 20th July 2004, 12:58

C4S, When you say breakdown of pricing then we can segregate them into two parts: The first is what is already included in your ex-showroom price (excise, entry tax etc.), and the second added on to the ex-showroom price.

Since you have asked about insurance and octroi, I presume you want to know what adds to the ex-showroom price of the car.

1. Octroi - It is at a fixed 4.5% on the ex-showroom price.

2. Registration - Beside some misc. paperwork anc certificate charges, the main component is the one time tax which for individual registration is 4% and for company registration is 12%.

3. Insurance premium is a direct component of risk. Therefore it is more expensive for me to register a car in bombay than say...Nasik or another small town. Typically for a metro, you can factor in a 3% to 3.5% of the price of the car. American insurance companies also calculate premiums based on the age of the primary driver, car colour/make/model/vintage, driving and parking location beside many other factors.

GTO

_Crazi4Speed_ · 21st July 2004, 03:43

Thanks a lot GTO, I thought as much...so when you take the car out the door..112.5% is what you end up paying..do you pay for insurance aranged by the dealer or that you pay separately?

Whats the whole idea behind screwing the poor companies over?? 12% thats rediculous...anyhow..

so now can you tell me how does the Maybach come to the price tag it is advertised as..

there was a post few months back about the options available for the car..which are not a whole lot? so if the car is really 285,000 pounds in uk with options of say 45k pounds the car comes to 330k with vat.. when factored with 101% duty and the rest of the taxes(including ins) you mentioned above the car comes to 5crs(which is really high ranges from 4cr) on the road then how are ppl in india being asked to pay 6cr or so like the magazines have mentioned?? but then in the magazine it was some maybach executive who quoted this price tag? I am confused man..what do you think??

I mean if you look at the bentley arnage R which is 135k pounds without vat..after adding duties it comes to 2cr exactly equal to what bentley is charging in india?? so why the diff here with maybach??

Hope to hear from you on this ..

cheers

GTO · 21st July 2004, 12:53

Quote:

Originally Posted by [b

Quote[/b] ]do you pay for insurance aranged by the dealer or that you pay separately?

Thanks to Ajmat, I get my insurance arranged independently. Something your dealer wont tell you is that you can transfer the 65% no-claim bonus from your previous car (or how much ever bonus you have) to your fresh purchase. Example? My Honda Vtec insurance cost me 10 grand after NCB compared to the 28 grand other people pay.

About the Maybach...honestly I dont know too much about their pricing strategy. Firstly I would get a hold of the actual pricelist. Probably the additional charges should be going toward the set-up fees of a service backup in India, homologation charges and so on. As also, the Daimler Chrysler bank account!

GTO

_Crazi4Speed_ · 21st July 2004, 23:58

Wow thats pretty good savings man..I would also like to know more about this but probably when I am heading back to india for good, who doesnt want to save money..

As for the maybach, I havent found a website for the dealers who are selling maybach in india..atleast they should have some info like mercedes does..i know its not a huge mrkt..but just good to include in mercs site i guess..but never mind..

my question was about homologation, I thought now you dont have to homologate a car if its beyound the 3000cc category? How would one get a one off car homologated, wouldnt that be stupid and pointless..I dont understand the whole thing..whats the reason they do homologation? isnt it road worthyness? but if a car is road worthy in most parts of the world shouldnt it becomes automatically road worthy in india?

so if tom I were to import say a car which has never been imported, would i have get homologation done myself??

thanx for the response..

Cheers

GTO · 22nd July 2004, 00:24

The Homologation process is just one of the ways that our government tries to dissuade people from importing cars, and instead buying locally supplied ones.

Any car that costs over $40,000 does not require homologation. The logic being that:

1. Its the segment below the 20 lac bracket ($40,000) that requires the most protection from imports.

2. Any car that costs $40,000 presumably is well built enough to pass Indian safety and road worthy requirements.

Testing for homologation is done by the ARAI (ARAI India). Now anyone would think that a Toyota MR2 that has passed the stringest of safety/emissions/road worthiness tests in the United States should be considered road worthy in India - at the very least. But ARAI has attitude. Other countries dont accept ARAI certification, and thus....conversely ARAI does not recognise international road worthy certificates.

GTO

GTO · 22nd July 2004, 00:32

And yes, I might add that the Directorate General of Foreign Trade only allows individuals and companies (under the EPCG scheme) to bypass homologation on their imported cars.

Every car manufacturer must homologate its imports...even if it costs $400,000!

GTO

_Crazi4Speed_ · 22nd July 2004, 00:51

Its not right..out govt should move ahead rather than sticking where they are, anyhow what can we do..

so if a particular car model has had the homologation done eg. maybach, the individual getting the car will not have to get it done again right? be it any car..lets say S500, cant I order the car from outside rather than ordering it from mercedes india? and if i do, since the S has been approved with homologation, the importer wouldnt have to get it done again right?

thanks for all the help..i needed to understand this crazi process...it has soo much complexity for no reason..

cheers

GTO · 22nd July 2004, 11:58

If you as an individual import the Maybach/S 500 or any car costing more than $40,000...you do not have to get the homologation done.

Let me put it this way. The ONLY TWO circumstances that homologation is required:

1. The imported cars value is less than $40,000.

2. A car manufacturer is importing a particular model for sale in this country. Then whether the car costs $1000 or $500,000....it has to be homologated.

Hope that helps,

GTO

_Crazi4Speed_ · 22nd July 2004, 12:02

Oh Ok ok, got it, thanx, I got confused a little by your prev post..i thought only under epcg can you withold from doing homologation, but I guess any individual getting it wouldnt need to..

makes sense..

Thanks a ton for the info.

Cheers..

20th July 2004, 03:14	#1
_Crazi4Speed_ BHPian Join Date: Feb 2004 Location: Shuffling between chicago and delhi Posts: 764 Thanked: 4 Times	Hi, I just want to know a little breakdown of the pricing of automobiles in india? I am not very familiar with the whole process and itemization..I only know that the car came and sat in front of the house..Never thought to figure it out.. Does the registration differ with the cost of the car? what percentage is registration, octroi, insurance usually? Or is there a fixed amount? Thanks for all your help. Cheers
	() Thanks

20th July 2004, 12:58	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,737 Times View My Garage	C4S, When you say breakdown of pricing then we can segregate them into two parts: The first is what is already included in your ex-showroom price (excise, entry tax etc.), and the second added on to the ex-showroom price. Since you have asked about insurance and octroi, I presume you want to know what adds to the ex-showroom price of the car. 1. Octroi - It is at a fixed 4.5% on the ex-showroom price. 2. Registration - Beside some misc. paperwork anc certificate charges, the main component is the one time tax which for individual registration is 4% and for company registration is 12%. 3. Insurance premium is a direct component of risk. Therefore it is more expensive for me to register a car in bombay than say...Nasik or another small town. Typically for a metro, you can factor in a 3% to 3.5% of the price of the car. American insurance companies also calculate premiums based on the age of the primary driver, car colour/make/model/vintage, driving and parking location beside many other factors. GTO
	() Thanks

21st July 2004, 03:43	#3
_Crazi4Speed_ BHPian Join Date: Feb 2004 Location: Shuffling between chicago and delhi Posts: 764 Thanked: 4 Times	Thanks a lot GTO, I thought as much...so when you take the car out the door..112.5% is what you end up paying..do you pay for insurance aranged by the dealer or that you pay separately? Whats the whole idea behind screwing the poor companies over?? 12% thats rediculous...anyhow.. so now can you tell me how does the Maybach come to the price tag it is advertised as.. there was a post few months back about the options available for the car..which are not a whole lot? so if the car is really 285,000 pounds in uk with options of say 45k pounds the car comes to 330k with vat.. when factored with 101% duty and the rest of the taxes(including ins) you mentioned above the car comes to 5crs(which is really high ranges from 4cr) on the road then how are ppl in india being asked to pay 6cr or so like the magazines have mentioned?? but then in the magazine it was some maybach executive who quoted this price tag? I am confused man..what do you think?? I mean if you look at the bentley arnage R which is 135k pounds without vat..after adding duties it comes to 2cr exactly equal to what bentley is charging in india?? so why the diff here with maybach?? Hope to hear from you on this .. cheers
	() Thanks

21st July 2004, 23:58	#5
_Crazi4Speed_ BHPian Join Date: Feb 2004 Location: Shuffling between chicago and delhi Posts: 764 Thanked: 4 Times	Wow thats pretty good savings man..I would also like to know more about this but probably when I am heading back to india for good, who doesnt want to save money.. As for the maybach, I havent found a website for the dealers who are selling maybach in india..atleast they should have some info like mercedes does..i know its not a huge mrkt..but just good to include in mercs site i guess..but never mind.. my question was about homologation, I thought now you dont have to homologate a car if its beyound the 3000cc category? How would one get a one off car homologated, wouldnt that be stupid and pointless..I dont understand the whole thing..whats the reason they do homologation? isnt it road worthyness? but if a car is road worthy in most parts of the world shouldnt it becomes automatically road worthy in india? so if tom I were to import say a car which has never been imported, would i have get homologation done myself?? thanx for the response.. Cheers
	() Thanks

22nd July 2004, 00:24	#6
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,737 Times View My Garage	The Homologation process is just one of the ways that our government tries to dissuade people from importing cars, and instead buying locally supplied ones. Any car that costs over $40,000 does not require homologation. The logic being that: 1. Its the segment below the 20 lac bracket ($40,000) that requires the most protection from imports. 2. Any car that costs $40,000 presumably is well built enough to pass Indian safety and road worthy requirements. Testing for homologation is done by the ARAI (ARAI India). Now anyone would think that a Toyota MR2 that has passed the stringest of safety/emissions/road worthiness tests in the United States should be considered road worthy in India - at the very least. But ARAI has attitude. Other countries dont accept ARAI certification, and thus....conversely ARAI does not recognise international road worthy certificates. GTO
	() Thanks

22nd July 2004, 00:32	#7
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,737 Times View My Garage	And yes, I might add that the Directorate General of Foreign Trade only allows individuals and companies (under the EPCG scheme) to bypass homologation on their imported cars. Every car manufacturer must homologate its imports...even if it costs $400,000! GTO
	() Thanks

22nd July 2004, 00:51	#8
_Crazi4Speed_ BHPian Join Date: Feb 2004 Location: Shuffling between chicago and delhi Posts: 764 Thanked: 4 Times	Its not right..out govt should move ahead rather than sticking where they are, anyhow what can we do.. so if a particular car model has had the homologation done eg. maybach, the individual getting the car will not have to get it done again right? be it any car..lets say S500, cant I order the car from outside rather than ordering it from mercedes india? and if i do, since the S has been approved with homologation, the importer wouldnt have to get it done again right? thanks for all the help..i needed to understand this crazi process...it has soo much complexity for no reason.. cheers
	() Thanks

22nd July 2004, 11:58	#9
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,737 Times View My Garage	If you as an individual import the Maybach/S 500 or any car costing more than $40,000...you do not have to get the homologation done. Let me put it this way. The ONLY TWO circumstances that homologation is required: 1. The imported cars value is less than $40,000. 2. A car manufacturer is importing a particular model for sale in this country. Then whether the car costs $1000 or $500,000....it has to be homologated. Hope that helps, GTO
	() Thanks

22nd July 2004, 12:02	#10
_Crazi4Speed_ BHPian Join Date: Feb 2004 Location: Shuffling between chicago and delhi Posts: 764 Thanked: 4 Times	Oh Ok ok, got it, thanx, I got confused a little by your prev post..i thought only under epcg can you withold from doing homologation, but I guess any individual getting it wouldnt need to.. makes sense.. Thanks a ton for the info. Cheers..
	() Thanks