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Re: Suzuki Hayabusa to be assembled in India, price to drop by Rs 5 Lakhs
Thats only the engine. The chasis has to be imported too.
Originally posted by tanay
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Here is what the Hayabusa costs, at transfer prices:
So a transfer price of 5,65,400 is currently incurring a 60% duty which brings us to a total of 9,04,640. Suzuki then adds its margins etc. and sells it for 16 Lakh ex-showroom Delhi.
Some time later Suzuki starts CKD ops for this bike, which means 30% duty, thereby getting us to a total of 7,35,020.
That is a difference of only 1.7 lakhs. And let us further assume that Suzuki reduces its margins per bike as well (they have a ready-made assembly line, created for the Inazuma).
With all this, a cut of 2-3 lakhs looks realistic, 4 seems far-fetched and 5 seems flat-out impossible.
I would love to be proven wrong though.
So a transfer price of 5,65,400 is currently incurring a 60% duty which brings us to a total of 9,04,640. Suzuki then adds its margins etc. and sells it for 16 Lakh ex-showroom Delhi.
Some time later Suzuki starts CKD ops for this bike, which means 30% duty, thereby getting us to a total of 7,35,020.
That is a difference of only 1.7 lakhs. And let us further assume that Suzuki reduces its margins per bike as well (they have a ready-made assembly line, created for the Inazuma).
With all this, a cut of 2-3 lakhs looks realistic, 4 seems far-fetched and 5 seems flat-out impossible.
I would love to be proven wrong though.
Thats only the engine. The chasis has to be imported too.
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