[taranonline]

Originally Posted by anb

You can buy a Laura TSI and do petes stage 2 performance upgrade. The claimed output power is 320bhp. The car does 0 to 100 in 6.9 seconds, 0-200 in 25 seconds. Upgrades include remap, bigger turbo,suspension and brakes. The total modification cost is around 7-8 lakhs

On a fwd? That kind of power is no good for fwd. needs to be rwd or awd.

[rohanjf]

This thread will be similar to the thread about hot hatches? The same arguments will apply.

The only way out for a manufacturer would be to reuse an existing model that costs about 10L, to save on investments. But then, the percieved fuel efficiency tag of that model gets dented, due to the lack of knowledge in common people.

Also, there are no cars around 10L range with RWD (no no, not Amby, please), which is preferred.

Even if one is ready to invest in a 300BHP family sedan, will his family let him buy it over its 120 BHP sibling?

[Royal_Snake]

I understand the market in India is fuel efficiency obsessed, and the biggest reason is that fuel prices are sky high here.
But i still think there is scope for performance cars as a second car for car lovers. Some manufacture must evaluate this market.

[Equus]

Originally Posted by Royal_Snake

I understand the market in India is fuel efficiency obsessed, and the biggest reason is that fuel prices are sky high here.
But i still think there is scope for performance cars as a second car for car lovers. Some manufacture must evaluate this market.

Fuel prices are high due to the taxes. Same with cars - the govt collects min 50% on each car sold. Do you know how many folks in the country earn more than 10L as per the IT dept?? If the tax payer base widens, there is no doubt the taxes will come down. Till then, this is the indirect way of taxing everyone. No doubt its almost like double-taxation to the honest tax payers.. But thats something which cant be solved.

[taranonline]

Thanks for merging the thread. FYI BMW made in germany costs more in Germany than after being imported to US. Go figure it out.

[vineethvazhayil]

Checkout the prices of the Spark in the US. The Indian version now looks like a steal, however we have far less equipment on the Spark. Autoblog - US Market Spark

[Ricci]

Originally Posted by taranonline

Thanks for merging the thread. FYI BMW made in germany costs more in Germany than after being imported to US. Go figure it out.

That's due to taxation, Europe has much higher average taxation than the US , something that annoys a lot car/bike/gadget fans . The price in USD and GBD for some cameras, for example, is almost the same numerically - so Brits pay upto 40% more for the same thing. Petrol was Rs 80 a litre in UK years ago, now it's probably closer to 95 and over 100 in Scandinavia. USA is consumer's paradise.

[apachelongbow]

Interesting question this.... Are we being ripped off? In a sense it feels like a rip off conducted together by the govt and the car manufacturers. The govt by imposing senseless taxes on components, cars, roads, fuel etc and the manufacturers by giving very less safety equipment for the price they charge us. The govt policy harks back to the nehruvian/socialist philosophy... tax the rich to feed the poor, in present case however its tax the middle class and pocket the income...

What we collectively don't realize is that high car prices are hidden by EMI schemes so we feel we all can afford cars which are simply overpriced for the value they bring in.

Which manufacturer can explain why his diesel variant which is often lower speced than the petrol one is priced minimum 80k to 1lac more than the petrol? Is this a case of simply making full use of the demand for diesel vehicles? If diesel prices are freed, will the diesel vehicles then be priced equal to the petrol ones?

[taranonline]

Originally Posted by apachelongbow

Interesting question this.... Are we being ripped off? In a sense it feels like a rip off conducted together by the govt and the car manufacturers. The govt by imposing senseless taxes on components, cars, roads, fuel etc and the manufacturers by giving very less safety equipment for the price they charge us. The govt policy harks back to the nehruvian/socialist philosophy... tax the rich to feed the poor, in present case however its tax the middle class and pocket the income...

What we collectively don't realize is that high car prices are hidden by EMI schemes so we feel we all can afford cars which are simply overpriced for the value they bring in.

Which manufacturer can explain why his diesel variant which is often lower speced than the petrol one is priced minimum 80k to 1lac more than the petrol? Is this a case of simply making full use of the demand for diesel vehicles? If diesel prices are freed, will the diesel vehicles then be priced equal to the petrol ones?

Im sure diesel engines are expensive to make that why they cost more. Diesel engine are heavier than their petrol counterparts.

[lurker]

Originally Posted by taranonline

Im sure diesel engines are expensive to make that why they cost more. Diesel engine are heavier than their petrol counterparts.

the are only marginally expensive. For instance cost of materials for a diesel engine may well only be 5k to 15k more than a petrol. Ofcourse addition of turbo etc increases the price of the diesel engine. Then diesel engines need bigger and heavier batteries and certain tweaks in wiring etc. Anyhow the cost to manufacturer is definitely not more than 15k than a comparable petrol whatever hype they spread about quality/compression of diesel engine etc.

[one-77]

Originally Posted by Equus

Fuel prices are high due to the taxes. Same with cars - the govt collects min 50% on each car sold. Do you know how many folks in the country earn more than 10L as per the IT dept?? If the tax payer base widens, there is no doubt the taxes will come down. Till then, this is the indirect way of taxing everyone. No doubt its almost like double-taxation to the honest tax payers.. But thats something which cant be solved.

Well most people who buy imports/CKDs/luxury cars have evaded income tax, so the taxing these cars is sort of a way to get even. But many of our everyday cars too, especially diesels, are grossly overpriced for the build quality features they offer. We as consumers don't have any choice but to pay up. Even new entrants to the market are toeing the same line.

[vinaydas]

Originally Posted by one-77

Well most people who buy imports/CKDs/luxury cars have evaded income tax, so the taxing these cars is sort of a way to get even. But many of our everyday cars too, especially diesels, are grossly overpriced for the build quality features they offer. We as consumers don't have any choice but to pay up. Even new entrants to the market are toeing the same line.

That was a pretty baseless statement to make. Do you the amount to taxes that "people who can afford super cars " pay? The amount is in Crores.

The question is how much tax can a person evade?

[one-77]

Originally Posted by vinaydas

That was a pretty baseless statement to make. Do you the amount to taxes that "people who can afford super cars " pay? The amount is in Crores.

The question is how much tax can a person evade?

Well I did say only most, not all. If any of the reports on Indians' money stashed away in tax havens is to believed, the coffers did lose some!

Edit: We are deviating from the topic here!

[don_carmaster]

Hello people,

I have this strange query , tried searching a lot but couldnt find anything

I have a whole swarm of relatives in the states.
And when they buy their dream cars there they cost so damn less to the extent of 30 to 40 percent difference of prices of the same in India

For example-

A humble honda accord costs a bomb upwards of 20 lakhs in india
Where as the same model is available at a much lower rate out there in us
At least 30 percent lower

And as we know that the manufacturer margins range from 15 percent to infinty (high end cars)so it means they arent making any profits there or what?

Pardon my ignorance if it being too noobish.
Mods please do merge if there is already a topic on this.

Thanks,
Sahil

[aaggoswami]

Originally Posted by don_carmaster

Hello people,

I have this strange query , tried searching a lot but couldnt find anything

I have a whole swarm of relatives in the states.
And when they buy their dream cars there they cost so damn less to the extent of 30 to 40 percent difference of prices of the same in India

For example-

A humble honda accord costs a bomb upwards of 20 lakhs in india
Where as the same model is available at a much lower rate out there in us
At least 30 percent lower

And as we know that the manufacturer margins range from 15 percent to infinty (high end cars)so it means they arent making any profits there or what?

1) High Taxes. IIRC, in EU, its Britain which has such high taxes and also ( as we followed their system ), India has very high amount of taxes. Last year, some reverse calcuations showed that a Cruze would cost Rs. 10/- lakh and not Rs. 15 lakh. This was done by a sales person in GM showroom when I went with my friend to inquire about Cruze. 25% excise = 1/5th of the original price. This is way too much.

Straight away Rs. 15,000 tax on all cars above 4 mtrs. in length and having engine capacity more than 1.2 ltrs. for petrol and 1.5 ltrs. for diesel.
This is ridiculous.

VAT is also another example.

Its not only purchase, but also maintenance which is expensive. Pay excise and VAT while buying car, pay service tax everytime you service your car. All firms are to do business, so we cant actually help here, here and here.


2) Profit margin. Believe it or not, in its good Days, Honda managed to earn a lot of profit with sales that were less than a fifth of Maruti. Just to indicate that manufacturers are having their own good profit margins.