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Old 25th February 2018, 12:15   #31
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Default Re: Driven: Volvo XC60

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Take a test drive of a car with the remap and notice the difference
There isn't a test car available with the remap, not in Hyderabad at least, and in a way, I am thankful cause I am sure if there was a car available and it was really that much better than the stock car, I would have found it extremely hard to not shell out another 1.3 lacs for it.
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Old 25th February 2018, 12:28   #32
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Default Re: Driven: Volvo XC60

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I did enquire about the price for the Polestar upgrade and it costs 1.3 lacs . While it doesn't really bump up the power & torque numbers by much, from what I have been reading, the throttle response and gear shifts are supposed to get a lot sharper, changing the character of the car. But 1.3 lacs?? I mean, it's just a software remap.
The actual price if you negotiate with them is a lot lot lower than the MSRP of 1.3 lacs. The difference in my v40 petrol was pretty substantial with it.
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Old 25th February 2018, 13:56   #33
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Default Re: Driven: Volvo XC60

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The actual price if you negotiate with them is a lot lot lower than the MSRP of 1.3 lacs. The difference in my v40 petrol was pretty substantial with it.
Really? Can you tell me how much you had to pay and when was this? If this is truly the case, then I might consider getting the remap done sooner.
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Old 25th February 2018, 16:23   #34
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Default Re: Driven: Volvo XC60

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The actual price if you negotiate with them is a lot lot lower than the MSRP of 1.3 lacs. The difference in my v40 petrol was pretty substantial with it.
Yes it , I was offered the same for 25K but did not take it as I felt it's pointless for my XC90.
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Old 26th February 2018, 11:16   #35
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Default Re: Driven: Volvo XC60

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Congratulations on booking the car. My dealer told me that I should be getting the car somewhere around the end of Feb, although he hasn't confirmed a date yet, so more or less around the same time you should be getting your car. Was Crystal White your first choice of colour? I wanted the Pine Gray but owing to the huge demand for that colour, the dealer told me to pick another colour. Went with Onyx Black.
Thank you, and congratulations to you too! Yes, Crystal White was the first choice for me. My F10 is white too, and while the XC60 looks great in all colours, I just cant handle the pain of maintaining a darker colour. Speaking of colours, I cannot understand why Volvo India isn't offering more options. The XC60 is a CBU and it should be pretty easy for them to offer a wider palette.
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Old 26th February 2018, 20:48   #36
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Default Re: Driven: Volvo XC60

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Thank you, and congratulations to you too! Yes, Crystal White was the first choice for me. My F10 is white too, and while the XC60 looks great in all colours, I just cant handle the pain of maintaining a darker colour. Speaking of colours, I cannot understand why Volvo India isn't offering more options. The XC60 is a CBU and it should be pretty easy for them to offer a wider palette.
I know all about the pain of maintaining a black car having one already. Just that the only light colour available is White and neither my wife nor I am too fond of White. And I agree with you about the limited colour options. What I found strange is that the allotment seems like a lottery system, or at least that's what my dealer tells me. So not only did I not get my first choice exterior colour, I didn't get my first choice interior colour either. And apparently, while Volvo promised the dealer 7 cars this month, only 2 have been allotted, one of them being mine, and I should get it this Friday, or Sunday at worst.

BTW, does anyone know of a good online VIN decoder for Volvos. I have the VIN but depending on which site I try it on, I get the manufacturing year as 1988 or 2018, while the dealer tells me the car is Nov 2017 manufactured.
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Old 26th February 2018, 22:56   #37
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Default Re: Driven: Volvo XC60

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BTW, does anyone know of a good online VIN decoder for Volvos. I have the VIN but depending on which site I try it on, I get the manufacturing year as 1988 or 2018, while the dealer tells me the car is Nov 2017 manufactured.
As of today none, I decoded my XC90 in polestar website which is dead now.

Last edited by mjumrani : 26th February 2018 at 22:56. Reason: Typo.
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Old 27th February 2018, 09:06   #38
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Default Re: Driven: Volvo XC60

The new Audi Q5 seems overpriced in front of this package.

A question: Is this the same 8 speed as the new X1?
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Old 27th February 2018, 10:06   #39
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Default Re: Driven: Volvo XC60

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A question: Is this the same 8 speed as the new X1?
Yep same Aisin 8 speed AT present in the X1 with different software.
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Old 27th February 2018, 13:04   #40
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Default XC60 Brilliant pricing or not?

I've recently been in an XC60 and absolutely love the car and agree with most of the comments and observations on the thread apart from the pricing.

Driven: Volvo XC60-screen-shot-20180227-12.42.57-pm.png
Import details for Volvo XC60


See the thing is, it costs them about 38 lakhs landed with duties etc. Plus Volvo gets considerable Tax exemptions etc from the government which should bring the cost down even less. I shared a similar post on the motorcycle pricing discussion thread (Import duties on bikes revised, CBUs to cost less).

Have manufacturers successfully managed to raise prices and at the same time lower the kit and our expectations? Thread - (The ridiculous price hikes of German luxury cars - Mercedes, BMW & Audi)

Driven: Volvo XC60-screen-shot-20180227-12.54.29-pm.png
Import duties for an XC90, it carries an ex-showroom price of over 80 lakhs

I have been told that a dealer makes around 2-3% maximum on the sale of a new car, and does Volvo really need to make 17-20++ lakhs per car that too after tax rebates and paying duties on retail pricing (I am not sure how much they pay per unit to parent company since duty is calculated at retail value).

Although its great news that new feature-rich car models are being launched in the country, I am not so sure should I be happy with the pricing just because everything else is obscenely priced or have I incorrectly assumed how car pricing and sales work?
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Old 27th February 2018, 13:45   #41
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Default Re: XC60 Brilliant pricing or not?

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Originally Posted by quickdraw View Post

See the thing is, it costs them about 38 lakhs landed with duties etc. Plus Volvo gets considerable Tax exemptions etc from the government which should bring the cost down even less. I shared a similar post on the
You forgot GST on the final value mate. I have posted the taxes in details in my XC90 ownership thread , quoting the same here:

Quote:
Landing cost of the car according to Zauba (September 2016 information) is: 15,59,394/-
Import duty: 33,21,509/- (213% according to Zuaba HSN code 87033291)
Ex-Manufacturer: 55,24,475/- (Volvo India adds about 6.43L)
GST: 28% on ex-manufacturer: 15,46,853.14/-
Cess: 15% on ex-manufacturer: 8,28,672/-
Ex-Showroom: 79,00,000/-
Road Tax (19.98%) + registration charges: 15,80,659/-
Total: 94.8L

Out of 94.8L that I paid to the dealer, the government took 72.7L as taxes and only 22.02L reached Volvo.
I don't think Volvo is getting any subsidies for selling cars via CBU route. CKD is a different story all together.

Last edited by mjumrani : 27th February 2018 at 13:49. Reason: Typo.
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Old 27th February 2018, 14:07   #42
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Default Re: XC60 Brilliant pricing or not?

GST can be set-off by the manufacturer against their purchases, so it is not an actual cost for them per se.

Also, any manufacturer who is exporting out of India gets import duty credit, which the company can use to get back the duty they've paid up front.

In this case, it is not easy to get to know how much of the 72 lakhs was claimed back by Volvo because it is an internal company to government body transaction.
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Old 27th February 2018, 14:24   #43
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Default Re: XC60 Brilliant pricing or not?

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Originally Posted by mjumrani View Post
You forgot GST on the final value mate. I have posted the taxes in details in my XC90 ownership thread , quoting the same here:

I don't think Volvo is getting any subsidies for selling cars via CBU route. CKD is a different story all together.
Hey Mjumrani, your thread was the reason I dug deeper into how these things work, I was quite moved by the statement on the XC90 pricing, this leads me to dig deeper on how CBU and CKD taxation policy has evolved last few years.

My understanding is that the GST Paid by Volvo would be claimed back by them when they purchase or hire local services. Private customers have no such option. Also, Volvo gets significant customs duties rebates for exporting parts and heavy vehicles.

Report - Volvo Daimler make India an export hub

Duty drawback that was announced to please big auto.

Obviously, this system only benefits those who are exporting, but its quite obvious they are enjoying fat margins above and beyond the duties and regulations of the land while customers are shelling out more and more taxes, cesses and other ancillary costs. We need to look beyond just import duties and taxes to figure out the margins on these products.
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Old 27th February 2018, 16:26   #44
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Default Re: XC60 Brilliant pricing or not?

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Originally Posted by quickdraw View Post
My understanding is that the GST Paid by Volvo would be claimed back by them when they purchase or hire local services. Private customers have no such option. Also, Volvo gets significant customs duties rebates for exporting parts and heavy vehicles.
.
GST is paid by the purchaser of the car to government via Volvo. Volvo may not be claim it back as ITC, the reason being that if purchaser is into car lease business he / she gets the ITC. I know an individual who has done that for a couple of BMW's he owns.

Last edited by mjumrani : 27th February 2018 at 16:27. Reason: Typo.
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Old 27th February 2018, 17:28   #45
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Default Re: XC60 Brilliant pricing or not?

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Originally Posted by mjumrani View Post
GST is paid by the purchaser of the car to government via Volvo. Volvo may not be claim it back as ITC, the reason being that if purchaser is into car lease business he / she gets the ITC. I know an individual who has done that for a couple of BMW's he owns.
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Relevant blurb from recent Economic Times story.

Let me digress using your XC90 calculation as an example.

1) Invoice value for the customs: 15,59,394/-

2) Duty paid: 33,21,509 - This figure that Volvo India will claim back on the basis of whatever the company exports out of India. The specifics depend on the actual workings on how much Volvo has claimed back from the government but I can assure you they export way more buses and heavy vehicles than then import passenger cars.

The sub-total at this point (1+2) is Rs. 48,80,903/-

The figure goes up to 55,24,475/- after adding the margin of 6.43 lakhs as quoted above.

3) GST of 18% on 55,24,475 : 15,46,853/- This figure can also be taken as input credit against whatever GST amount that Volvo has to pay to their vendors here in India.

4) Cess of 15% on 55,24,575/-: 8,28,672 - Cannot be claimed back by the company in any way or form, goes straight to the government.

The ex-showroom now quoted comes up to 79 lakhs.

On this, the state government takes 20% as road tax and registration charges. Insurance is extra on the ex-showroom.

In this whole thing, Volvo keeps a good chunk #2 & #3, based on their export performance and local GST purchasing etc, all apart from 6.43 lakhs as margin.

Hope this helps?

Last edited by quickdraw : 27th February 2018 at 17:30.
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