Where there is demand, there will be price increases in any area possible. This is clearly the case as luxury carmakers saturate the currently lucrative Asian exotic car market, which has paved the way to a government tax increase from 10% to 30%. What? A government demanding a larger slice of the profits (Note sarcasm)?
BMW Z4 Roadster India, now 20% higher?
The luxury car boom in India will now become more expensive, which isn’t likely to put it to a screeching halt anytime soon. The luxury car market’s Chinese women will continue to swipe credit cards for exotic cars, no matter what the taxes are. Those investing in luxury brands like Mercedes-Benz, Audi, Land Rover and BMW will simply have to dig deeper into their wallets for the privilege of ownership.
Audi R8 India
The Indian government has imposed an increase in tax on foreign locally assembled cars. This is an obvious move to benefit financially from the robust luxury car market India as foreign luxury brands open operations in in ever-increasing numbers. The luxury carmakers will, of course, pass the costs on to customers.
Chinese women purchase a large amount of luxury cars
According to Peter Honegg, CEO and MD of Mercedes-Benz India,
"We are looking at increasing prices for one of our major models in the next few weeks. We would be paying high tax on one of our cars with a high proportion of pre-assembled components. The new policy regulation has forced us to bring in new prices soon.”
Other foreign luxury car brands in India will soon follow suit.
Land Rover LRX India
Post by Imagine Lifestyles Luxury Rentals