[tsk1979]

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

[Su-47]

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.

[StarScream]

Originally Posted by bimi

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.

[Tron]

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.

[bullboy]

top whack of only 125 kph and 110 ?

[Tron]

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).

[reppy]

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.

[anandtheleo]

Originally Posted by reppy

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.

[appuchan]

Originally Posted by extreme_torque

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

...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.

[Tron]

Originally Posted by Tron

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.

[jassi]

car manufacturers are sitting on a cash cow - might as well milk it while it lasts

[opendro]

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.

[Tron]

Originally Posted by opendro

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?

[Elito11]

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

[aaggoswami]

Originally Posted by Elito11

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.

Originally Posted by Elito11

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 %.

Originally Posted by Elito11

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.