viveksonkhla

Indians being cheated by international car makers

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Indian customers are being taken for ride by many international car makers. Just think entry level cars in US and UK are being pitched as luxury and Super luxury segment cars to Indian customers. Not only that some basic features of car safety are overhyped and made a part of luxury segment.... I remember the days when even seat belts  being present in a car was overhyped ..not only by International but also by indian car manufacturers....its only when Hnr. Supream Court made it mandatory to have seat belts in all cars ..they became a standard equipment....

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I dont know how you make such a ridiculous statement by and large international companies give us quality products compared to premier and hindustan motors which for decades sold us junk quality and now are joined by Tata to an extent as well. You are not a politician by any chance are you?

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Indian customers are being taken for ride by many international car makers. Just think entry level cars in US and UK are being pitched as luxury and Super luxury segment cars to Indian customers. Not only that some basic features of car safety are overhyped and made a part of luxury segment.... I remember the days when even seat belts? being present in a car was overhyped ..not only by International but also by indian car manufacturers....its only when Hnr. Supream Court made it mandatory to have seat belts in all cars ..they became a standard equipment....

I cannot agree more. in fact I'd started a similar thread some time back, have a look at it here

http://www.autocarindia.com/new/autocar_forum/forum_posts.asp?TID=1209&KW=car+manufacturers&PID=19620#19620

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I dont know how you make such a ridiculous statement by and large international companies give us quality products compared to premier and hindustan motors which for decades sold us junk quality and now are joined by Tata to an extent as well. You are not a politician by any chance are you?

that's no excuse for selling even better (read safer, more powerful) products in other countries for half the price. did you know for example that the difference between a corolla and a camry in the US is just INR 2 lacs (as against INR 10 lacs here)? good thing you're not a politician. oh wait a minute, maybe you are...

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made in india or fully imported would have nothing to do with the price difference between the corolla and camry would it?

am glad you asked that smiley1.gif of course the duties play a huge part. but the camry in the US will cost you as much as a much lower specced corolla in India. if anything, the corolla here should cost us even less, since we don't have the crippling wage and healthcare costs the US imposes (ref GM)

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following on from barry's point, a friend of mine owns a toyota dealership. he sold a fleet of camry's to the marriot in mumbai who used their foreign exchange earnings to offset the duty (which they are legally entitled to do). the cost of the car to the hotel? about INR 9 lacs. this is the retail price of the car including toyota's profit margin internationally. you can barely buy a corolla for this money.

which means that even after the 120% CBU duty, the camry still has a huge profit margin at about INR 22 lacs.

which begs an even more relevant question: if the camry were locally assembled here, would they price it this low? yes, I don't think so either.

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You seem a bit confused and also do not take into account that an increase in base price would have a compounding effect on the otr price because of registration ott insurance etc. Also nobody seems to have commented on my observation that it is the Indian companies that have sold us substandard products for years

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You seem a bit confused and also do not take into account that an increase in base price would have a compounding effect on the otr price because of registration ott insurance etc. Also nobody seems to have commented on my observation that it is the Indian companies that have sold us substandard products for years

companies like hyundai have made india their global manufacturing base so how come we don't see any cost advantages locally? (taxes on locally manufactured cars approximate less than 40%). while you are quite correct in pointing out that taxes are high, it would seem that car cos. use this to build in abnormally high profits - the price Indians seem willing to pay after 5 decades of being sold substandard trash from Fiat India and HM.

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its not about the quality and the price only......Indians are offered cars that have been selling in other countries years may be decades back.....for example...Toyota qualis....was being sold in South African markets for more than 13 yrs when it came to India.....but Why go back in history.. we have one latest example.....Fiat Liena......Launched in Istanbul in 2006.....and now its being pushed to India as next generation Fiat Car....

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You seem a bit confused and also do not take into account that an increase in base price would have a compounding effect on the otr price because of registration ott insurance etc. Also nobody seems to have commented on my observation that it is the Indian companies that have sold us substandard products for years

 

Here is the answer to your great observation....your big brother bullies you in your house....does this give your neighbour rights to bully as well.....

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Taking the discussion further just take a look what is being offered by International car companies across UK and US markets....

 

Ford:

 

Hyundai::

 

Fiat

 

Honda

 

Toyota

US:http://www.toyota.com/

 

 

Just try and figure out how many of these models are available in India......

but, when I look at the used car sections .....almost every model sold in India is available......

 

 

 

 

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its not about the quality and the price only......Indians are offered cars that have been selling in other countries years may be decades back.....for example...Toyota qualis....was being sold in South African markets for more than 13 yrs when it came to India.....but Why go back in history.. we have one latest example.....Fiat Liena......Launched in Istanbul in 2006.....and now its being pushed to India as next generation Fiat Car....

it also sells there for about INR 7 lacs (Logan territory)

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Taking the discussion further just take a look what is being offered by International car companies across UK and US markets....

?

Ford:

?

Hyundai::

?

Fiat

I am delighted to see so many Indian consumers become aware and demand more from our manufacturers. this should mean a whole host of improvements from the morons that run these cos.

?

Honda

?

Toyota

US:http://www.toyota.com/

?

?

Just try and figure out how many of these models are available in India......

but' date=' when I look at the used car sections .....almost every model sold in India is available......

?

?

?

?
[/quote']

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It is true that the product sold in India or other developing countries is not the same as sold in the west.

The main reason in my opinion is the fact that the laws in the west regards to car manufacture are different and more stringent. The liability of failure of car parts more expensive to reimburse, so manufacture go that extra mile to create a product which exceeds the limits applicable as they dont want to be caught with a huge liability claim bill which can happen even if one reported incident points out to defect in the product.. remember the Hyundai toppling over issues during reversing.

In developing countries the laws are not that stringent so the manufacturer will invest so much only which just about manages to cover those laws applicable.

Remember it is a business and profit margins are supreme, thats the reason why manufacturers are falling over themselves to start plants in the developing region.

Ancillary makers in such markets also follow the above rules. So the difference in the dash feel quality on a Honda city made for India and that made for UK and US.

Unless and until laws and regulations regards to cars and bikes on road change in our markets we will keep on seeing such differences.

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It is true that the product sold in India or other developing countries is not the same as sold in the west.

The main reason in my opinion is the fact that the laws in the west regards to car manufacture are different and more stringent. The liability of failure of car parts more expensive to reimburse' date=' so manufacture go that extra mile to create a product which exceeds the limits applicable as they dont want to be caught with a huge liability claim bill which can happen even if one reported incident points out to defect in the product.. remember the Hyundai toppling over issues during reversing.

In developing countries the laws are not that stringent so the manufacturer will invest so much only which just about manages to cover those laws applicable.

Remember it is a business and profit margins are supreme, thats the reason why manufacturers are falling over themselves to start plants in the developing region.

Ancillary makers in such markets also follow the above rules. So the difference in the dash feel quality on a Honda city made for India and that made for UK and US.

Unless and until laws and regulations regards to cars and bikes on road change in our markets we will keep on seeing such differences.[/quote']

good point anijog and this highlights the unhealthy nexus between high tax, protectionist govt policy and the dumping ideology practised by all manufacturers (yes, even you Hyundai) in India today. we think of ourselves as a progressive nation, manufacturers see us as easy pickings.

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Auto manufacturers cant be fully blamed. What is the quality of the products that are made in India and used in Cars. Regarding the features we dont want to spend much on CARS. See the sales of SWIFT ZXI. It has airbags but hardly anyone goes for it, they go for cheaper version VXI or LXI. So government needs to be strong enough to control these things or someone like TATA should take initiative, After Indigo CS, many manufacturers are planning to bring a 3 box a lower price.

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Auto manufacturers cant be fully blamed. What is the quality of the products that are made in India and used in Cars. Regarding the features we dont want to spend much on CARS. See the sales of SWIFT ZXI. It has airbags but hardly anyone goes for it' date=' they go for cheaper version VXI or LXI. So government needs to be strong enough to control these things or someone like TATA should take initiative, After Indigo CS, many manufacturers are planning to bring a 3 box a lower price. [/quote']

 

One opts for the option because he has the option.....if companies stop selling cars with stripped down versions....people will have no option but to buy a safe car......at higher price.......but for car makers...selling numbers of cars is more important than .....selling safe cars..........and being penny pincher is not only an indian trait..is everywhere........

 

Tell me ....who is forcing maruti to sell...VXI or LXI version......its the choice they have made....

 

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Auto manufacturers cant be fully blamed. What is the quality of the products that are made in India and used in Cars. Regarding the features we dont want to spend much on CARS. See the sales of SWIFT ZXI. It has airbags but hardly anyone goes for it' date=' they go for cheaper version VXI or LXI. So government needs to be strong enough to control these things or someone like TATA should take initiative, After Indigo CS, many manufacturers are planning to bring a 3 box a lower price. [/quote']

?

One opts for the option because he has the option.....if companies stop selling cars with stripped down versions....people will have no option but to buy a safe car......at higher price.......but for car makers...selling numbers of cars is more important than .....selling safe cars..........and being penny pincher is not only an indian trait..is everywhere........

?

Tell me ....who is forcing maruti to sell...VXI or LXI version......its the choice they have made....

?

why don't we get safety features across all variants, as options? why are safety features considered part of luxury variants? this is a trend maruti started, and everyone else followed on

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To most of the international car manufacturers countries like India are like dumping grounds....they creat a car.....sell it in so called first world countries......and when the product completes its life in that market and the technology has become obsolete, the company sells this old technology to their so called JVs in Indian or similar market....and charge the customers a hefty price for the so called latest tech......

 

And now we haqve a gread game going on....sale Fiat Multijet engine in Indica, Palio and Swift.......what a grea tway to cheat customers........same engine under different names.....great

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