SUV costs 2 rupees in India, and $ 30 for Cham in Dubai: Investment banker collapses why

Have you ever looked at the price of a luxury car in India and asked why you feel very high? It turns out that you do not imagine things.

The cost of 2 Crores of Land Cruiser in India is only $ 30 for Cham in Dubai. This is 80 % price difference – for the same car.

“The difference in pricing is amazing,” says Sarthak Ahuja banker. “A 1 -crurled BMW X5 is available in India for about $ 65,000 ($ 55 per cde) in the United States – approximately half of the price.”

It indicates that Range Rover, which costs 2 crores in India, will cost about $ 80 in the United States, or nearly 60 % cheaper.

But Dubai is really fluctuating mathematics. AHUJA added: “Fortuer, which costs 50 dollars in India, sells $ 35 to Dubai, and Land Cruiser is approximately 80 % cheaper.” Even BMW X5 is about 75 dollars in Dubai – is still 25 % cheaper than India.

So what is happening here? According to Ahuja, all of this is due to the punishing tax system in India. “Import duties on luxury cars range between 60 % and 100 %, and adds the commodity and services tax by another 28 %, then there is Cess, and finally government road taxes,” he explains. “Effectively, 45 % of the car price on the road in India is just a tax.”

On the contrary, Dubai has the minimum import duties, and the final price depends more on factors such as local demand, shipping methods and wholesale demand. “For this reason, price differences differ in the form, even if taxes are low,” AHUJA notes.

However, he adds that he does not waste all hope for Indian buyers. “If you look at Maruti, Tata, or Hyundai, it is best to buy in India – it is made here, the world’s competitive prices.”