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[ahuja365]

Cars in India are mostly overpriced but the going was good when there was boom in the market.But the situation has changed with the recesion in the world and slowing of the economy which i feel should come as a realty check for car manufacturers.The models in India lack excitement or are out of the reach of most buyers. What say guys which models or manufacturers should rethink their price.

[sonirohit]

Originally Posted by Sudipto-S-Team

I think we should remember two things while doing these comparisons - A. pricing is a strategy. Companies charge what they think customers can pay or are ready to pay and this will vary from country to country, region to region. B. Don't do a straight conversion of the rupee to dollar or pound for these comparisons. That will give a very distorted and misleading picture, particularly for high value items like cars. There is a concept called purchasing power parity which is more important here. PPP in short means what an average British guy can purchase for one pound (not any one fixed item but various average items) in the UK is not quite what an Indian can purchase for Rs 80 (assuming pound to rupee is 1:80).

Are you trying to say that UK is cheap??? IMHO - UK is one of the most expensive countries in the world to own a car - an Indica which you could buy here for 4 L would cost you about 7000 GBP. Not to mention the high rates of diesel in UK - close to 1.19 GBP/Litre - 80 - 90 Rs a litre...

[f450]

Originally Posted by sonirohit

Are you trying to say that UK is cheap??? IMHO - UK is one of the most expensive countries in the world to own a car - an Indica which you could buy here for 4 L would cost you about 7000 GBP. Not to mention the high rates of diesel in UK - close to 1.19 GBP/Litre - 80 - 90 Rs a litre...

I'll give you two reasons why the Indica's more expensive in the UK:

1) The obvious reason: It's manufactured in India, so import costs would have to be taken into account.

2) Manufacturing costs in terms of labour are a lot cheaper in India.


In reply to the topic, Indians are being ripped off in terms of after-sales service etc. NOT in terms of prices. The car manufacturers are just passing on their import taxes to us (remember even for cars which are assembled in India, the PARTS are imported and taxed). But you can't blame the Government either because they want more car manufacturers to start manufacturing in India.

[Samir Taheer]

Sonirohit - whats the point of comparing an Indica? you cant really compare Uk and Indian prices. Whats commonly avialable here might be rare there. And also the Tax implications.

But yes the Indian buyer is being ripped off. To most the Zen, M800, Innova are great - but they were all outdated models and we were still paying the higer end of the price for them. Things are obviously changing - but very slowly. Cars in India still dont come will the Spec's and option you get elsewhere - but you still pay the premium!!!

[Xeno]

I dont want to throw a spanner in the machinery , but i'd add my thoughts

but I feel we're being ripped off by roads conditions first and then cars. where are the taxes going anyway ? and looking at Bangalore , I certainly do not want more cars to be seen. I'd probably would have to ride my bike on the footpath then.

Also kindly be aware that the no of morons is overwhelmingly more than the saner people. Let the licensing system improve and then the roads and then let the cars come. People in UK or US don't have it that easy when they break a rule or two, while we get away with almost everything.

Btw, motorcyclists get ripped off even more so be happy. we still have obsolete pieces of motorcycles (HH splendour still continuing on the CD100 engine) going about restickered and getting "alloy wheels" and the higher ones are upgraded only look wise (car fellas be happy that you're getting MPFI in every car now) when you can buy a good learner's bike (that is a 250cc) at 3-4times the price with updated technology in it.

[sunilgee]

This is something that has been bugging me for some time and I needed to get this out of my system.Over the years I have been aggreived at the the ridiculously high prices the Indian Motoring public has had to pay for the so called premium/premium luxury and only in India kind of super luxury cars.
From the real begining of the Indian automobile revolution circa the mid/late 90's the motoring press has been glorifying ordinary low end models like the Maruti Esteem,Honda City/Civic, Toyota Corolla, Skoda Octavia as luxury cars, family sedans like the Honda Accord, Toyota Camry as premium luxury cars.The first super luxury car in India...Mercedes Benz... even sold us a discontinued model the 124 E class till they ran out of the left overs.
The automobile starved Indian consumer lapped it all up and was forced to pay ridiculous prices for this low end trash and continue to do so.We were always given the low end base models or discontinued models. Also India must be the only country in the world where the discontinued model and the replacement models are sold alongside, the Hyundia Accent and Verna, Getz and I20, the Skoda Octavia and Laura.Our motoring press glorify them as value for money buys ...wow!!
The common excuse was the high tax regime but the Government of India must be appreciated for progressively reducing Excise Duty, Import Duty and other levies.Most companies increase prices before the budget and anouncement of the import export policy.They usually follow this up with a price increase,the excuse,rise in input costs.The direct or indirect benefits of a tax or duty reduction is never passed on to the consumer.. a double whammy for the consumer.The ususal excuse for high prices is the high tax regime..is that the truth..is India the only country in the world which has federal and state levies/taxes on automobile products.
Our government with its protectionist policies are only helping the foreign manufacturers to rip off the Indian motoring public.Please compare the international prices of brands like the Honda Civic/Toyota Corolla/Skoda Octavia (the Skoda Laura exists only in India) in Europe,UK and the USA.Do they have a tax free no duty system of trade.
Audi/BMW/Mercedes... they cost more than luxury apartments in most cities.Compare Mercedes prices in India and in the UK/Europe/USA, we are paying E class prices for a C class, S class prices for an E class and no where else in the world prices for a S class and this is for less features,older version engines and bare minimum warranty packages. Indian C and E class cars have considerable local content so the excuse of high import duty is hot air.Mercedes in the last decade has almost doubled prices of the E class. Also what about the low labour costs in India..another benefit for the manufacturer.We are paying almost USD 100,000 for an A6 Audi/5 series BMW/E class Mercedes..just search the net for US prices of these cars, check out the features, engine options,warranty packages,roadside assistance.The manufacturers are defintely taking us for A RIDE
As a mallu my first reaction to all this nonsense is to start a union.. a union of the Indian motoring public to stop this highway robbery.We must pressurise the government to open up imports of both new and used cars with neccessary regulations on enviornment and safety standards.If the automobile manufacturer has the freedom to fix the prices..the Indian consumer must have the freedom to buy at the best prices from anywhere in the world, the free market is not for the benefit of the manufacturer alone, it has to work both ways.We must stand up for our rights,united we can succeed.
We BHPIANS can make the difference....

[chaxy]

Sunil, Totally agree to your point. same is the case with the prices of hi end electronics and luxury goods. Probably it makes sense to buy a cheaper indian brand car like MM and Tatas.

[jasher26]

I completely agree with you Sunil. So well detailed. Its a long haul to achieve this but we have to start somewhere

[narry]

Originally Posted by sunilgee

This is something that has been bugging me for some time and I needed to get this out of my system.Over the years I have been aggreived at the the ridiculously high prices the Indian Motoring public has had to pay for the so called premium/premium luxury and only in India kind of super luxury cars.
-----------------
We BHPIANS can make the difference....

hi
well check prices of flat and shop in mumbai
can beleive some flat price are even highter than new york hongkong
do have any justification for price even higher than new york o r hongkong
can compare the infrastutrues in this countries with india
so
infact beleive we must develop infrastruture and public tranport first
this very important
regards
narry

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[throttleking]

sunil finally you took it off your chest, i totally agree with and i have usually had many arguments with friends when it comes to pricing of any car and models available by different manufacturers. However i also feel its not only the case with luxury car segment but with all the other categories.

Look at the case of Hyunadai, they keep launching new cars which i believe should be natural progression for the older models. Verna lanched and Accent still continues, I10 launched Santro still continues, I20 lauched and Getz still continues. And on top of this all with pathetic pricing.

This is really frustrating at times, and i finally started believing that its not the problem with manufacturers, they are very much right in their business strategy and ultimate objective is to make money. The problem lies with our very own consumer, and we are very much part of it. We do entertain the pathetic pricing and different car models positioning.

Having said that, let me contradict my own statement, We have no choice but to entertain them. So the root cause remains unidentified.

[jasher26]

has anyone done any research on this? Is it that manufacturing cost of cars in India is higher? I doubt it though I am not the right person to talk about it

An automatic i10 costs 6 lakhs in Mumbai! , on road price. Its too much

[serious_maniac]

Interesting discussion. My comments:

1. Allowing imports : no way. What is the incentive for car companies to set-up manufacturing in India? Automotive sector can be a big employment generator and Government has to force these companies to set-up base in India.

2. The market in India is relatively small and thats why the prices are high (low volumes). Also owing to limited range of cars manufacturers may not have much competition to fight. This is a chicken and egg situation which will get sorted over a period of time. Already with many more manufacturers entering the market the pace of this change should quicken.

3. Small cars are better for environment and the world would start moving towards them from economics point of view (hopefully!!). India is in a good position to take a part of the manufacturing pie.

Having said all of the above, I share your frustration that as an enthusiast because we are unable to enjoy the cars which people enjoy globally.

~maniac

[Psycho]

Here is a nice exerpt from an article here:

“The total tax on a passenger car amounts to 54 per cent of its basic price at the factory gate. As much as 35 per cent of what a customer pays for the car today goes as tax to the Union and state governments,”

Makes me wonder if I am overtaxed already?

[aerohit]

Agree with the post, but you also have to agree that - India remains a poor country till today - due to very fault of its own citizens -> having more than 1 child (overpopulation), not removing curropt leaders from office through People's Revolution (like in Thailand recently), and disregard to its own environment and surroundings by throwing trash everywhere, and, treating a foreign tourist better than a local Indian in his own country, not raising voice like China/Russia does, and always acting like a Mice overall.

No wonder, world treats India like crap.