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Old 28th January 2021, 14:07   #1
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Why are the "BIG" bikes pricier than cars?

I have always wondered why are the "BIG" bikes priced as much as the cars or on most occasions pricier than the cars. The general perceptions people have are,
1. Bikes are technologically advanced.
Definitely they are, so are the modern day cars.
2. Bikes are more powerful and faster.
Yes they are, the cars are not far behind.

While a million rupee or a little more will fetch you a modern car with 1000+ cc engine with decent power output and a lot of features, a 1000+cc bike will cost much more. Agreed, the comparison is not a valid one, but, just the amount of hardware a car has compared to a bike, is what gets me thinking! The cheapest twin cylinder bike is our market probably is the RE Interceptor 650 priced at around 3.5 lakh rupees. Quite a few other bikes with lesser engine displacement actually cost atleast 50 grand more. We have 2-3 cars with atleast a 800cc powertrain available in this price range. I seriously don't know what "special" technology is used to manufacture these BIG bikes, that they are priced so high. If it is because of the sales volume (which is relatively low), the bikes are priced high, there are quite a few cars in our market which have even lesser sales numbers. Probably a decade ago, big capacity bikes were mostly imported and our tax structure obviously rendered these machines expensive. The BIG bikes sold in India via CBU route are obviously expensive. But I think there are quite a few of them which are manufactured/assembled in India. One such notable example is BMW G310 series bikes.

Is it because of the taxation, the bikes are priced higher? Are they priced higher just for the premiumness? I may sound naive, still for the purpose of hypothesis, if we compute the cost of each and every component of a BIG bike and a similarly priced car separately, my assumption is that the cost of the bike will be significantly lower than that of the car. I have not found a convincing logic behind the pricing from anyone till date. Please share your knowledge fellow BHPians.

Note: Moderators may delete the thread if found not valid for discussion.

Last edited by Emvi : 28th January 2021 at 14:08. Reason: Grammar
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Old 28th January 2021, 14:36   #2
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re: Why are the "BIG" bikes pricier than cars?

Few reasons could be:

1000cc cars are sold in volumes. Hence, manufactured in mass production. Therefore, the manufacturing costs reduces.

Whereas, same litre class bikes are not sold in volumes. Therefore, manufacturing costs will shoot up.

Added to this, tax structure is different for higher cc bikes. CKD shipping cost also add up.

Another major factor is, 1000cc car is made of average middle class family. Whereas the same 1000cc bike is made for rich and super rich people. So, manufacturers keep this in mind while arriving at the ex showroom price.

So there are multiple factors that influence the pricing.

Last edited by gkveda : 28th January 2021 at 14:37.
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Old 28th January 2021, 15:04   #3
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by Emvi View Post
I have always wondered why are the "BIG" bikes priced as much as the cars or on most occasions pricier than the cars.

Bikes are more powerful and faster.

Agreed, the comparison is not a valid one, but, just the amount of hardware a car has compared to a bike, is what gets me thinking!
A super bike can be compared with a super car then the super bike seems much much cheaper.

Many BIG bike owners I know have stopped redlining the scene in their cars after experiencing (read riding) their BIG bikes

Compare the power to weight ratio of a Kawasaki ZX-10R and it's equivalent Super car's cost. Which seems affordable now?

BIG bikes are dreams that can be lived! Till supercars are in 2D on our walls BIG bikes seems affordable.

PS. I'm not here for spec sheet battle. The feeling, the essence of a Superbike is at a different level. I'm also not justifying the high price of a BIG bike!

Cheers,
surjaonwheelz

Last edited by surjaonwheelz : 28th January 2021 at 15:05.
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Old 28th January 2021, 15:09   #4
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by Emvi View Post

Is it because of the taxation, the bikes are priced higher? .
Yes ,taxation plays a big part in the price.

But there is more. A 1000cc bike is developed for speed and performance , while a 1000cc car is developed for value.

A 1000cc bike can easily reach speeds upto 300kmph. They are made using the best materials available which are light weight and strong. They are built with utter precision and quality. There is basically no compromise while building a "big bike". That's why you pay top dollar for them. And as gkveda mentioned, they are sold low volumes. All of these factors together are the reason why they cost so much.

For a 1000cc car there might be some compromise on the quality and features as they are meant to be affordable (We have plenty of examples in India).

After all of this add the shipping costs you might have to pay for shipping the bikes from Europe or Japan.

Hopefully this is helpful.

Last edited by Eshan Joshi : 28th January 2021 at 15:15.
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Old 28th January 2021, 15:13   #5
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re: Why are the "BIG" bikes pricier than cars?

There's no comparison between a state of the art litre bike with lean sensing abs/multi axis IMU and premium materials with an engine that squeezes 200 HP per 1000cc and not aided by forced induction with say a Honda city with barely 120 bhp at the wheel . The taxing is also very high for CBU as many of these bikes aren't manufactured or assembled here.
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Old 28th January 2021, 15:14   #6
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by Emvi View Post
While a million rupee or a little more will fetch you a modern car with 1000+ cc engine with decent power output and a lot of features, a 1000+cc bike will cost much more.
On the other hand, for pure desirability and performance factor - no car comes close to the affordability of a superbike.

Take the case of the Kawasaki Ninja 1000SX for example. 1043cc, 142ps, 596 ps/ton power to weight, 0-100 kph in ~3.3 seconds - all available at the price of a top end Hyundai i20. Or the Z900 which has 125ps available for the price of a Swift.

Getting any sort of decent performance is beyond the reach of the common middle-class man here! Skoda vRS costs 45 lakhs!

Funnily enough - I paid the same money for both my car and bike. 7.9 lakhs got me a Punto in 2012, and the same 7.9 lakhs for the Versys 650 in 2016. Make no mistake as to which one feels more special, feels 4 times faster, can handle any roads better and feels every penny worth.

PS: Even though I love the car!
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Old 28th January 2021, 15:16   #7
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re: Why are the "BIG" bikes pricier than cars?

Consumers in India believe that a big bike is premium, while an Alto or Nano or Redigo is just a basic mode of transportation for the masses. There is more willingness to pay for a big bike. If you ask around, you'd be surprised to see the number of people who would prefer to take a loan for a 5 lakh bike instead of a basic hatchback even if there are more than 2 members in the family.
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Old 28th January 2021, 15:26   #8
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by surjaonwheelz View Post
A super bike can be compared with a super car then the super bike seems much much cheaper
You have put things in the right perspective .

Clarifying my thoughts further, when I say BIG bikes, it's not only about litre class machines. As I have already mentioned in the first post, few sub 500cc bikes just don't seem to justify their price tags. I am taking about the sub 500 cc BMWs, Benellis, Kawasakis and a few others as well.
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Old 28th January 2021, 15:32   #9
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re: Why are the "BIG" bikes pricier than cars?

I think the actual question got lost some somewhere between the word BIG and SuperBike

The question is:

If Maruti Alto 800cc costs Rs. 3,00,000 Ex Showroom. And it has FI, Liquid Cooling, 2 Disc Brakes, ABS and 3 cyl engine, Extra equipment for 2 extra wheels, seating for 2 extra people, 1 Airbag and a roof.

Why does a BMW G310 GS cost Rs. 2,90,000 when it also has FI, Liquid Cooling, Disc Brakes, ABS but does not have 3 cyl engine, extra equipment for 2 extra wheels, 2 Drum brakes, larger battery, seating for 2 extra people, 1 Airbag and a roof.

Taxation on both is similar. There is a 2% difference if I am not wrong. Alto is more powerful. Alto has more metal. Just the Airbag can account for the 10k difference.

Just because of the fact that Alto sells more does not make it cheaper. If that was the case, BMW could also drop prices and sell more, isn't it?

The reason is not fun either. Someone could have fun on a BMX Bicycle or a Skateboard. That doesn't make it priced 3 Lac rupees.

Last edited by antz.bin : 28th January 2021 at 15:34.
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Old 28th January 2021, 15:44   #10
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re: Why are the "BIG" bikes pricier than cars?

It is just a matter of perspective, if you look it from the point of perspective of getting into the world of high performance vehicles, a Superbike is relatively the cheapest entry ticket to it.

Superbike is a usually a dream, while the cars in same price bracket are mere means of transport, there is nothing like a Superbike.

Last edited by BANDHAV : 28th January 2021 at 15:47.
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Old 28th January 2021, 15:48   #11
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by antz.bin View Post
I think the actual question got lost some somewhere between the word BIG and SuperBike
You have elaborated my thoughts precisely
Yes, the power output and the fun factor of a BIG bike is incomparable. As you too have quoted, other than these factors, cars offer a lot more.

Last edited by Emvi : 28th January 2021 at 15:51.
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Old 28th January 2021, 15:59   #12
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by antz.bin View Post
Just because of the fact that Alto sells more does not make it cheaper. If that was the case, BMW could also drop prices and sell more, isn't it?

The reason is not fun either. Someone could have fun on a BMX Bicycle or a Skateboard. That doesn't make it priced 3 Lac rupees.
That's like saying that Lamborghini should make 10x more cars so that they can prices it at 50% of their currents prices . The demand for a G310 is abysmal compared to an economy car whose sole purpose is to be an A to B machine. Economy of scale is a big factor, hence if 20k G310s were sold domestically then it would be priced at a lower price.
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Old 28th January 2021, 16:24   #13
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by Emvi View Post
You have put things in the right perspective .

Clarifying my thoughts further, when I say BIG bikes, it's not only about litre class machines. As I have already mentioned in the first post, few sub 500cc bikes just don't seem to justify their price tags. I am taking about the sub 500 cc BMWs, Benellis, Kawasakis and a few others as well.
Good that you put things in perspective! I guess the reason that a RE 650 or a BMW 310 costs so much is because:

1) Development costs, its probably cheaper to design a 4 lakh INR car than a 4 lakh INR bike.

2) Competition - low volume cheap cars like Hyundai Eon and Tata Nano couldn't increase the prices because then they would be completely priced out of the competition. Why would you buy a Nano over a swift if they cost the same? Same goes for Royal Enfields sold abroad. RE 350s can cost upto 6 lakhs abroad (if I remember correctly) and the price increase is not just accounting for the modifications required for developed markets but the placement of the product in the market as well.

3) A BMW 310 can reach much higher speeds than an Alto, so it needs to be engineered for the same and more expensive materials have to be used.

4) Very low volumes and being premium products, the manufacturers will take higher margins, its a given! Same with sports cars and super cars.

The reasons for the high prices for 500cc and above bikes (compared to cars) are a combination of these - 50% technical and 50% market dynamics.
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Old 28th January 2021, 16:30   #14
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re: Why are the "BIG" bikes pricier than cars?

One of the reason is to fit so many things in a small area takes a lot more money then fitting the same stuff in a bigger area. This coupled with lower volume of production, local sourcing & manufacturing of products etc.
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Old 28th January 2021, 16:51   #15
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re: Why are the "BIG" bikes pricier than cars?

Quote:
Originally Posted by dragracer567 View Post
Good that you put things in perspective! I guess the reason that a RE 650 or a BMW 310 costs so much is because:
May I request you to elaborate points 1 and 4 if possible?
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