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Originally Posted by aniketi Our norms and taxes are not very friendly for sure but they are same for everyone, be it Indian manufacturer or international manufacturer. Toyota, VW, Skoda are battling ground with same norms and taxes so as Tata, Mahindra. Ford exited mainly because their other models flopped big time apart from Figo, Ecosport in last 10-15 years. Why only blame our government? |
I hope you do understand that the policies of our government clearly favor local brands and companies for obvious reasons (Also called lobbying). And I hope you also understand that when local manufacturers produce a vehicle in India using locally sourced materials, they're not paying import duties and taxes on CKD or CBU units or imported parts and money saved is money earned because still they price them very close to their foreign counterparts in some cases.
Also, it is already an established fact that anything manufactured locally here is quite low in quality (we clearly lack the QC element here) although many would not admit it due to a false sense of pride but since I've been a quality analyst all my life, I can clearly tell good quality from bad and vice-versa. For reference, try 'feeling' the plastics and fabrics inside a Tata/Mahindra vehicle for starters and then go to your nearest Toyota Dealership and compare with a similarly priced vehicle and if you've even the slightest of analytical ability, the quality differences will be substantial. Even the headlights and tail lights (Stanley or Koito Japan on Toyota/Honda/Mitsubishi/Nissan vs Locally made lights on Indian Cars). I won't go into the engine and drive-train and manufacturing practices as that will be a whole another topic in itself. But if you can spot these basic differences that's enough to prove my point because engine and drive-line will be a whole another ballgame when it comes to these multinationals who spend billions of dollars on R&D unlike local automakers.
These are only to name a few because no matter what happens Japanese and Germans rarely compromise on their quality unless the government really pushes them that far (Maybe that day will come soon too). So, it's very easy to defend the current scenario but it's actually quite bad. Foreign automakers are facing a very hard time surviving here barring a few who have models in the volume & budget lineup only because they don't treat their customers as guinea pigs while Indian brands conveniently do so.
I would also take this opportunity to highlight that I've been quite involved in this passion for the last 15 years and can proudly say that I've driven 'almost' every car that has been available in India in the last 15 years or even prior to that. So, I know what I'm talking about here and I'm not being paid money by any brand to endorse them. All my views are my own and at the end of the day we're all free to make our own choices depending on our budget and likes/ dislikes.
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Originally Posted by gauravdgr8 Fact of the matter is, that taxes are uniform for all manufacturers. VW and Skoda are not crying and have launched decent models last year and have seen pleasant sales. Even MG for that matter. |
I see you've misunderstood my points above. Photography meant the equipment (like cars in this case) on which we pay hefty duties to buy a lens that costs half the price in US or UAE or HK. I never mentioned the apps or individual talent.
I own a Porsche that costs 4 times the price of a 35 lac SUV but I do care about water/electricity. No matter what you think, we know how water and electricity are an issue in our country. Not just the rates of electricity but also the availability and the quality of the same.
Taxes are not the same, if you're going literally - yes. But when you think about it, No. If you read my post above, you'll see how local players don't have to pay import duties and taxes while foreign players have to, not because they want to but because if something can't be made locally, they have to source it from outside because they won't compromise on the quality like local brands do and that is where they take a hit. See there are plenty of things in this business model and it's not as simple as it's mentioned by the media.
That was exactly my point -Indian and Korean/Chinese manufacturers are very good at 'Copying'. That's because ethics are not a part of their business model, it has never been, never will be. If you read the books on cultural differences, you'll understand the principles that govern these countries, especially China and Korea.
I'm not saying that Ford was perfect because they weren't. You are partially correct there. But instead of following what everyone does they chose to leave because in any case, it wasn't worth it to carry on in this market when they were getting better profits elsewhere. I mean how do you expect a brand to survive when they have to sell a Mustang for 80 lakhs in India, that's like a joke in itself and still, there were takers, that's another joke
Why do I blame the government? Well, I'm glad you asked but I'm sure if you search a little you'll figure it out yourself as well. I'll keep it restricted to cars only while there are 'n' number of other things I can compare to justify. The salaries in the US are twice or in some cases almost thrice that of those in India but their cars cost half or less than half in most cases. The imports on almost everything are pretty much affordable and yes you CAN import cars you like without all the hassles and red-tapism present here. Trust me when I say we're being screwed royally by our own government.
A little google search goes a long way. No offence to anyone, you made your points and I respect it totally but the fact also remains that Subaru and now Tesla couldn't make it to the Indian market because the government wouldn't relax the policies for them, also because that would challenge the local players. So, it does matter to a large extent while to some extent the brands have to improvise as well
