Cars in India cost twice as much as in the U.S.A.

I was looking to buy a car in India got a sticker shock on the prices of cars in India. Take for example Toyota Corolla you can buy a good one for $15,000 and the same one in India will cost Rs.10 lakhs ($25,000).

Yes, accepted that the customs and excise duty are higher in India. However, I would imagine since the auto workers, mechanics and sales people in India are paid a small fraction of the salary in the US. There must be some cost benefits. But apparently not. Wondering how much the price would have been if the employee costs in India were comparable with the U.S. Maybe Rs.20 lakhs per car ($40,000).

I am guessing that if Toyota priced the sales of Toyota Corolla in the U.S. at $25,000 like in India – its sales in North America would fall to the same levels in India less than 10,000 units instead of several lakhs.

I feel sorry for all those who don’t know how much they are overpaying for their ‘luxury’ car. Its like paying 100 rupees for Lifebuoy soap. The price does not alter the fact that Lifebuoy is a mass market soap. Think about that… πŸ™‚

Suggested Reading:
Lessons from NRI H1 Holders: Colonial Mindset Absent in USA-Systems Designed for Everyone
Other Cultures Respond Positively to Accidental Death While Doing Job/Pursuing Interests
What H1 Visa NRI’s Have Learnt from America – Expectations from and Duties of Government

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