Why luxury cars are expensive in india than us?

CBU Import Car Prices For cars that are imported completely as fully built units (CBU), taxes are even higher. Only the import duty for these vehicles is set at 100%. And the large amount of other taxes is above import duties. Now, you know why so many luxury cars sold in India push the 1 crore rupee mark.

GST rates range from 29 percent to nearly 50 percent, depending on car and engine. Vehicles with a gasoline engine of less than 1.2 liters and a length of less than four meters are subject to a combined tax of 28 percent GST and one percent CESS, for a total of 29 percent. Similarly, this fee varies from vehicle to vehicle, depending on its length, fuel type and engine size. The car you buy runs on fuel (gasoline, diesel, or CNG).

But you pay excise taxes on the fuel you use for your car, which ranges from 35 to 45 percent of the price of fuel. When you renew your insurance, have your car repaired, or buy parts and accessories, you'll have to pay 18 percent of GST. Once you've bought a car, you'll have to pay taxes. The car may or may not be imported as a CBU (Complete Built-Up) unit.

Parts are often imported and then built in India as CKD (Complete Knock Down) units. Parts imported under the CKD system are also subject to high taxes. Import duties are calculated at 30% for engine or gearbox mechanisms that are pre-assembled but not mounted on a chassis or body assembly. Engines, gearboxes and transmission mechanisms that are not pre-assembled are subject to a 10% import duty.

For cars that are fully imported as fully built units (CBU), taxes are even higher. Luxury cars like the Toyota Camry and the Skoda Superb are 120% more expensive before they reach you, the buyer. While the Dzire is the best-selling sedan in the country and is very affordably priced, the Camry is aimed at those looking for a luxury car and only sells around 100 units each month.

Minnie Langehennig
Minnie Langehennig

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