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Originally Posted by extreme_torque I dont understand this funda of saving the local car industry... these car companies just want to make huge profits (might not be show in their balance sheets). If taxes are reduced to 40% for imported cars as someone suggested we'll get a Honda Accord for 10-11 lakhs, and we get a bloody santro for abt 4 lakh here! Do u think santro is worth 4 lakh rupees when it is made locally, or zen which is even cheaper to make than alto but still sells at a price more than even the wagon R. We need some kind of regulations else we'll be taken for a ride by car companies in future as we have been till now! |
About Rs.1.5 lakhs from the Santro's and Zen's prices would go towards excise duties, sales tax, surcharges and (if you live in Mumbai) Octroi. The actual cost of the car is much less...less than 2 lakhs, probably - if you take the average dealer margin of Rs.20,000 (or less, in case of some cars) into consideration.
Protecting the local industry has its advantages - we will at least get to make cars here, instead of merely being consumers who buy. If we were to import all our automobiles, there are n number of manufacturers in the world who would like to sell their cars here. The downside is that the only auto-industry we have will be restricted to those making seat covers, wheel caps, neons, spoilers and other cosmetic add-ons.
The advantage of local manufacture is there for everyone to see - Suzuki has just reached the magic figure of 2 million cars a year worldwide, of which 1/2 a million or more comes from Maruti alone. Now you see why Maruti is so important to Suzuki and why it was so criminal to let them get control over what is their largest manufacturing base outside Japan for so little.
Hyundai is another manufacturer that has leveraged its local presence very well - they will soon have exported 200,000 cars from India. I'd much rather see cars made here sold elsewhere than cars made elsewhere sold here.
Unfortunately some manufacturers like Honda and Toyota still service the much larger Indian market from their bases in Thailand. |