Why luxury cars are expensive in india?

Super-luxury cars, such as Lamborghini, Ferrari or Aston Martin, cost almost three times more than their real price when sold in India due to high taxes imposed by the government. Currently, if you decide to buy a Lamborghini, you have to spend more than 150% in duties and taxes. For cars that are fully imported 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. 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. 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.

Shari Venturelli
Shari Venturelli

Professional beer trailblazer. Total communicator. Freelance web expert. Wannabe coffee practitioner. Hardcore sushi maven. Passionate food guru.