Car price in India - Page 1 | General Discussions

#1 18-Feb, 2008 11:06 PM

Arindam Das

City: Bangalore

Long-termer

Are not we common people are getting Cheated by the MNC car maker and even some time from Indian car maker. A car which is foreign made lets take a car like GM's AVEO or Toyota Corrala or Camry. The corrola is about $14K in US = 5.6 L. GM'S AVEO = $13K in US = 5.2L. U-VA $11K= 4L.
And what is the Indian Market price, corrola is 10L, AVEO 7L, U-VA 5.5L. Again this all model is old model not the latest model. Which is much more almost double. I do understand that we may think of the TAX which is very high. But at the same time the labour cost is also very low compare to other country.
In India we also make many parts of our own. So please can some body explain is this price is realestic. All MNC's having their manufacuring comp also in India. You also have a lots of diff in feature and quality of this Car.
And Indian maker is more Cheater I believe. They dont have any import duty almost but still the price is like a foreign car. If you are looking for a avg mid size car it start from 6L. And SUV is 8L above.
So are we getting the value for money ??? OR we are getting Cheated by this Car company ???

Total Posts: 159

#2 19-Feb, 2008 04:42 AM

Suryanarayan Ganesh

City: Mumbai

Long-termer

Exactly how can you get "cheated" in a competitive open market? The automaker sets the price he feels he has to in order to make profits, and the consumer either buys it or not. So if you feel cheated, just don't buy the car, its that obvious.

In India the taxes are very high, and if a car maker says a car is 60% localized, it generally means by the number of parts, not the value of the car. For example, even in the Logan the engine and gear train are fully imported, and these are the most expensive parts in a car.

In the US, most parts are manufactured and even if imported, the duties are not as high as India. In India, most of the car manufacturers are assembly trains for CKD - not real manufacturing.

Also, car manufacturing is a highly automated process so low end labor costs dont matter so much.

You can also see that there is a nearly 10% difference nowadays between the ex-showroom and on the road price due to further taxes, insurance etc.

Besides this, the cost of doing business in India is also very high compared to countries like USA or China which are very business friendly, this contributes to higher costs as well.

Total Posts: 221

#3 19-Feb, 2008 09:30 AM

Amit

City: Karnal

Long-termer

Amit's avtar

Had the car companies been cheating they would not have been able to survive in a competetive market. Say for example if Maruti were cheating with higher car prices, why would Hyundai not try and price their cars to gain market share. Car companies (or for that matter any manufacturer or service provider) try to price their car (other products) the lowest they probably can, so as to impress the buyer, and also keep in mind the margins that they need to be able to continue to do business. So its a balancing act.
The whole pricing process is a very convoluted process involving a lot of taxes at various stages and huge import duties on the imported parts aswell. The import duties on parts is less as compared to the import duties applicable on ready cars. This is to entice the car companies to setup assembly plants in india and hence provide employment.
The higher import duties are not totally unjustfied in my opinion, because that encourages companies to manufature parts in india and that provides employment to people here. Otherwise we would have seen a deluge of parts manufactured in China which would provide us cheaper cars, but the down side would be that people here dont get employment.

Total Posts: 113

Last Updated: 19-Feb, 2008 09:32 AM, by Amit

#4 21-Feb, 2008 10:48 AM

Arindam Das

City: Bangalore

Long-termer

Agree with all the Taxes. But tell me how a comp gives away a car in the Year end at 30-40K discount. I dont think that time Tax/Labour goes down. And again I believe it is all becos of the Demand, they knows what ever the price is people are going to buy. Same as Real Estate Sector.
Recently a new Tradition is "When the Nano came all the Second hand Car price came down to 10-20%". Becos Nano can give a competetion to the Second car.
If you search You can find many comp name that make parts In india for automobile sector. And they Exporting tooo.

Total Posts: 159

#5 07-Mar, 2008 09:04 PM

Mmabster

New Arrival

It could be anyone from government to the car makers, somebody is taking the Indian car buyer for a "ride", that too an expensive one, pun intended. Car prices in India are astronomical compared to markets worldwide, no questions about it. If other countries can manage by lower taxes on cars and fuel, why cant Indian government. Indian governments seems to really enjoy taxing anything connected with transportation, be it fuel or the car itself. The tax system really needs good restructuring - only the salaried individuals bear the full brunt of taxes- that needs to change.

Total Posts: 1

#6 04-May, 2008 11:37 PM

Arindam Das City: Bangalore Long-termer	http://finance.yahoo.com/family-home/article/104985/Top-10-Dirt-Cheap-Cars Read this !!!
Total Posts: 159

#7 05-May, 2008 09:14 AM

kk

City: Hyderabad

Driven

What ever the reasons are; one thing is for sure. Indian OEMs will not be able to compete if the imports are not taxed and sold at the prices that they are sold in the rest of the world.

This kind if protectionism is not healthy for the consumer. The TATA and M&M should not be protected anymore. Look what they achieved for 50 or so years. Only now do they show a semblence of desire to improve. Today when finances as well as people/technology are available; these companies have no excuse for desiring protection. Be a man and compete with the rest.

An example is the US. The americalncar companies are now forced to improve their quality or for ever be lost.

In the end the consumer will win.

Total Posts: 43

#8 11-May, 2008 11:05 AM

Shiva Sambu City: Ahmadnagar New Arrival	Hi!!! Can you tell me which months of the year the prices of cars in india go low by 30k to 40k ? I am planning to buy Ford Fiesta.....can you please help me out in my purchase....?
Total Posts: 8

#9 11-May, 2008 11:28 AM

Arindam Das

City: Bangalore

Long-termer

Hi KK, Do you think this is a prtectism to save Indian Comp ? Tata/Maruti/M&M also selling their Car in Premimum price with low quality. Until we consumer don't arise our voice coomp will continue to enjoy the High Mergin. Still all Indian Comp take the Benefit of the Import Duty.
And another Culprit is the Dealer they wanna Max their profit.

Shiva..
You can try purchasing end of the Year. Thats 4th quater . Dec-mar. Thats time they normally gives you good discount. But I think Ford is giving some discount now. You can try ...

Total Posts: 159

#10 12-May, 2008 11:07 AM

kk City: Hyderabad Driven	I cannot prove it, but I am sure this is the case. They have a lobby and have always asked for a level playing field with respect to foriegn manufacturers. I wish some policy people or some Auto execs would shed more light on this issue. kk
Total Posts: 43