Ever checked out a luxurious automotive’s price ticket in India and questioned why it feels so excessive? Seems, you’re not imagining issues.
A ₹2 crore Land Cruiser in India prices simply ₹30 lakh in Dubai. That’s an 80% value distinction — for a similar automotive.
“The distinction in pricing is staggering,” says funding banker Sarthak Ahuja. “A BMW X5 that prices ₹1 crore in India is out there for simply round $65,000 (₹55 lakh) within the US — practically half the worth.”
He factors out {that a} Vary Rover Sport, priced at ₹2 crore in India, would value solely about ₹80 lakh within the US, or roughly 60% cheaper.
However Dubai is the place the maths actually flips. “A Fortuner that prices ₹50 lakh in India sells for ₹35 lakh in Dubai, and the Land Cruiser is sort of 80% cheaper,” Ahuja provides. Even the BMW X5 is round ₹75 lakh in Dubai — nonetheless about 25% cheaper than India.
So what’s occurring right here? In response to Ahuja, all of it comes all the way down to India’s punishing tax regime. “Import duties on luxurious automobiles are between 60% and 100%, GST provides one other 28%, then there’s a cess, and eventually state street taxes,” he explains. “Successfully, 45% of the automotive’s on-road value in India is simply tax.”
In distinction, Dubai has minimal import duties, and the ultimate value relies upon extra on components like native demand, delivery routes, and bulk ordering. “That’s why value variations differ mannequin to mannequin, even when taxes are low,” Ahuja notes.
Nevertheless, he provides that not all hope is misplaced for Indian patrons. “When you’re taking a look at a Maruti, Tata or Hyundai, you’re higher off shopping for in India — they’re made right here, and costs are aggressive globally.”
