Cheap labour but cars expensive in India

The rules in india are made to punish people who earn money and pay taxes and poor and farmers are given eveything free like free electricity to farmers which has made them more greedy,  free houses in Bombay for slums encroachers (which is run by land mafia).So who wants to pay taxes and think about nation.

Guys couldn't resist more after going through entire thread.

Lets do some cost benefit analysis:

Car Cost include: 

1. R & D

2. Labour (highly skilled core team and prepheral)

3. Parts (A: procurement, B: Import)

4. Marketing

5. Safety Measures and fatures

Let me run through quickly one by one

1. R & D: Primarily localted in respective manufecturer's HQ barring few not so core tech. Car launched in India are at least 1 Gen older version i.e. Figo: Pretty old engine (sigma series),

2. Labour: Definitely Indian labour is cheap and hence implies cars should be cheaper as no import duties on this,

3. Parts: Most of the cars assembled here are of completely different standard (read inferior) to one which is assembled in EU or US, Imported parts are more costlier than their price back home. In the name of localization we get made in India for India vehicles such as Etios to name one, ther are many examples.

4. Marketing: I will not elaborate on it,

5.Safely Features: In EU and US, Air bag,ABS are not considered features but essential without which car is not road worthy. In India these are not sold as standard equipements. Its not that people (buyers) don't care about safely features, its otherway round, manufacturer's do not give damn about it and so is government, life is literarly and metaphotically cheap in India.

Lets take example of New Fiesta, we have got raw deal and yes it cost bomb. Internal fit and finish is not at all same. I am correct, it is costing more than US model.

Looking at these factors, cars which are produced in India using cheap labour, poor part quality, sub par fitments, absolutely or minimal safety features/concern but this is not the case.

When we talk of CKD or CBU, import duties are steep.In case of CKD, again duties are substantially lower than CBU and are assembled using cheap labour, so should cost less.

Indian cars are inferior in terms of:

1. FE

2. Safety

3. Design: Dated desings

4. Environment: Who cares, does our government and Babus care about it. Emission norms are not followed and adhered to properly. 

NOTE: Inter state variation: Lets take Delhi's OTR or Gurgaon OTR which is among cheapest in India and compare but be honest and fair. Compare in terms of quality as well not only numbers.

so friends,

after reading all the above comments, i would like to say is

1) how blindly we trust the car makers who have cheated us for so may years and still cheating us.

2) our Govt and Babus are hand in glove to these manufacturers who give them LAND, WATER, ELECTRICITY and many many SOPS to set up their factories here......And all this at the expense of WE THE PEOPLE OF INDIA........who pay with blood in the form of TAXES.

3) And on top of it our Govt talks of slow economy and shields these foreign companies. thus filling their coffers outside India.

The main reason for the higher price is that the most of the parts especially engine and drivetrain are imported and they attract huge import taxes. Another reason is the licence fees paid by the local companies for some technologies used in the car to their parent companies. 

None of the factors you are listing will justify the premium charged for providing not so latest tech, safety features etc.