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Originally Posted by rubin2006 Guess sir i dont want to explain any futer about pricing polies cause i feel it not worth telling it to people who dont want to understand it but its the last time i am trying Points by Points if some people are not able to understand this please Forgive me and forget this topic |
your point is valid to a small degree, mercedes charges a premium, but its not as much as you think. Quote:
1. Real estate prices in London - Suppose you open a car showroom with 5000 SFT Of Area like MERCES BENZ the cost of 1 sQuare feet of space is
RS 114000 so so u need 57 crore just for the show room space in london
1) Here mercedes oprates with a small travel ageny like space show room which is not more than 2 crores in connaught place (delhi) and i am sure that at other places also in india mecr Dealers does not have to spend the same amount as in london
I am sure you must be aware one expects to have a margin in a product according to investments So its obviously that london dealer deserves a better payout then in delhi ( and this make car expensive in london) but no its still the same price as in delhi or we can say its expensive in delhi
The better margins are deserved by a dealer in london according to his investments But here in india Dealer get a same margin as dealer in london due to the fact that he knows that the company is robbing the indian people so he should also get the the share of the Booty.
2.The salary of a person is inbuilt in the product Pls dont suggest that salries are different at different place cause that is a very dumb answer which i was not expecting from any body above the age if 12 even if the salaries are different Merceds Benz pays more 8 Times more to sales people in UK and prices the cars 2 lacks less then india. Can you tell me Why Mcdonalld charges you 4 pounds for burger and a coke in london
and 60 rs which is less then 1 pound for the same burger and coke in india.Because its cheap to produce a burger in india taxes are same but Labour is cheap then london Retail space is again 1/10 The prices of london
3 transportation and handling Costs - If you dont know To transport a car in Europe costs about 6 Times the Costs in India Like if you pay 16000 To get a C CLass From Pune Pimpri To Delhi IT will Cost You 80000 In Europe ( still the car is 2 lacks Cheper in London )
4 We pay 24 % excise and if you think there is any other duty on a car manufactured in india then you should always know what ever customs duty you pay you get excise draw backs on It (now if some body dosnt know what excise pay back is then please excuse me ) for any parts that you import to make the car you get a rebate in excise
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You are not getting the point. total duty (excise+customs) etc., on a car which is brought in as a knocked down kit comes to approximately 70% + road tax etc., Quote:
The total Taxes On car Like C Class In india are 24 % excise and 4 % tax and regestration and Octroi This comes to 36 % tax of the value of the car so Merces Benz Keeps a Price Tag Of car to 20 lacks and after duties it comes to 28 Lacks Where as in other markets after paying 14+6 =20 % tax they re selling the same car for 14 lacks
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See my above point. If we had same duty structure as the US, mercedes would sell at a slight premium over the US price. As I mentioned earlier, a car which is completely built in India will cost 50% if the duties were not there.
For example, a tata indica costs 4.5L on road. That comes to around 10,000$ For that price you get a Chevrolet Aveo!
A similar spec car entirely made in India costs around 6.5L
A suzuki areo with Side airbags, ABS is a 155bhp sedan with boot. Cost = 7L. Similar spec car made in India will set you back by 10L Quote:
Now Honda Accord is manufactured in india which retails at $24250 which is available here for a premimm of 4.5 lacks in india so a mercedes which costs 31000 should be availabe for 6-7 lacks more in india but now it is 12-14 lacks expensive Can any body explain to me Why honda accord is not for 20 lacks and 15 if you mercedes logic is Fine Every thing is same ITS the Same Indian Government For a Merc And accord And Same taxes Or is there a difference
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Honda has higher volumes than merc, and also local content is more in honda, thats why lower duty
Honda accord(new one) will retail at around 18L on road. Thats now 4-5L premium.
Mercedes may be charging a little extra, but its not as much as you are making it out to be.
Last edited by tsk1979 : 8th December 2006 at 15:58.
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