There are a few key factor that contribute to BMW being more expensive in India compared to other countries like USA,UK, UAE, even thought they are manufactured in INDIA.
IMPORT DUTIES & TAX-
- INDIA imposes relatively high import duties and taxes on luxury car manufacture like BMW in India. regardless of where they are manufactured these taxes and duties can add significantly to the final price in india. some sources conduct tax around 28% GST over 20 lac of price car in India . and other taxes like ARTO,MICS, inc etc.
BRAND POSITIONING AND PRESTIGE PRICING –
BMW positions itself as a premium luxury brand in India, and prices its vehicles accordingly to maintain that brand image and prestige, even if manufacturing costs are lower. the truth is manufacture charge more than actual value of the vehicel.
LOCALIZATION & ECOMOMIES OF SCALE-
While BMW does have manufacturing operations in India, the production volumes are still relatively low compared to their global scale. This limits the economies of scale they can achieve, which raises the per-unit manufacturing costs compared to their high-volume US operations.for this reason many luxury car brand like BMW keep their price high in India than in other countries .
MARKET DYNAMICS & COMPETITION –
The indian car market likely more than smaller the other counties like USA .so BMW allowing higher prices due to less competition and lower price sensitivity among Indian consumer .
SUPPLY CHAIN AND LOGISTIC COST –
Transporting components and materials in to the indian manufacturing facilities , as well as distibiuting the final vehicles across india’s geography ,adds extra logistic cast the manufacturer . so these reason extra cast of INDIAN.
so the summery while local manufacturing helps the combination of taxes, scale,brand positioning and market dynamics result in substantially higher prices for Indians consumer versus the other market . the price differential reflects the realities of the two distinct automobile market.