Prices of popular cars in India Vs US: Why and How much are we overpaying


  • When Manmohan Singh (then Finance minister) opened the “Floodgates” to the International market in 1991, he promised a free and fair market in the Indian sub-continent. We did carry forward some protection schemes for the smaller indian companies to protect them. Skip forward to present day almost 26 years down the line. Why are we still taxing imports at 129% of the value and why is the Indian Customer paying a severe premium for their car?

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  • Now the Volkswagen Jetta is assembled in India which makes you wonder why, it's being sold in the US, with additional kit, at almost 3 lakhs cheaper than its Indian counterpart. A large percentage of that might be due to local manufacturers being unable to supply quality parts which means that VW will have to look else where.

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  • Now this one is really interesting considering the BMW X1 is in fact manufactured in India, with a significant percentage of localisation. This begs the question as to how one can conceivably justify a 10 lakh premium, over its North American Counterparts.

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  • Another CKD which is assembled in India by Toyota Kirloskar, is the Corolla Altis and while it costs only 11.9 lakh in the US market, we pay a premium of 6 lakhs bringing the total upto 17.17. All prices here are ex-showroom which means that we will be paying a further rate of taxes before the Corolla can hit the road.

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  • The S-Class is assembled in India, but still is almost twice the price as the US version which retails at a marginal 62.17 lakh in the US, but is sold in India at almost 1.19 crore!!

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  • Now the Santa Fe in it’s newest iteration makes it to India as a CKD and is assembled by Hyundai in Chennai. Which really begs the question as to what justifies the 10 lakh premium. What exactly are we paying extra for ?

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  • The newly launched Tiguan as well takes a beating on this pricing scheme, which for the life of me I can’t understand.While the US market pays a cool 16.31 lakh for their Tiguan, we pay almost 29 lakh for ours.

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  1. R
    Reg
    Jul 20, 2017 at 9:34 pm
    Lower prices in the US with much better spec I'm sure.
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