Ever checked out a luxurious automobile’s price ticket in India and puzzled 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% worth distinction — for a similar automobile.
“The distinction in pricing is staggering,” says funding banker Sarthak Ahuja. “A BMW X5 that prices ₹1 crore in India is obtainable for simply round $65,000 (₹55 lakh) within the US — practically half the value.”
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 mathematics actually flips. “A Fortuner that prices ₹50 lakh in India sells for ₹35 lakh in Dubai, and the Land Cruiser is nearly 80% cheaper,” Ahuja provides. Even the BMW X5 is round ₹75 lakh in Dubai — nonetheless about 25% cheaper than India.
So what’s happening right here? In keeping with Ahuja, all of it comes right 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 at last state street taxes,” he explains. “Successfully, 45% of the automobile’s on-road worth in India is simply tax.”
In distinction, Dubai has minimal import duties, and the ultimate worth relies upon extra on elements like native demand, delivery routes, and bulk ordering. “That’s why worth variations range mannequin to mannequin, even when taxes are low,” Ahuja notes.
Nevertheless, he provides that not all hope is misplaced for Indian patrons. “In case you’re a Maruti, Tata or Hyundai, you’re higher off shopping for in India — they’re made right here, and costs are aggressive globally.”
