Why is Mustang so expensive in India?
The Ford Mustang is an iconic muscle car that has captured the hearts of car enthusiasts worldwide. However, in India, the Mustang comes with a hefty price tag that often leaves potential buyers wondering why it costs so much more compared to its price in the United States. In this article, we’ll explore the key reasons behind the high cost of the Mustang in India.
1. Import Duties and Taxes
One of the primary reasons for the high price of the Ford Mustang in India is the country’s steep import duties. Since the Mustang is not manufactured locally and is imported as a Completely Built Unit (CBU), it attracts significant taxes. These include:
- Customs duty, which can go up to 100% of the car’s value.
- Additional taxes such as GST (Goods and Services Tax) and cess, which further inflate the price.
These taxes can sometimes double the car’s original price, making it far more expensive than in markets like the United States.
2. Shipping and Logistics Costs
Transporting a vehicle like the Mustang from its manufacturing location to India involves substantial shipping and logistics expenses. These costs include:
- Freight charges for shipping the car across continents.
- Insurance and handling fees during transit.
These additional costs are factored into the final price of the car, contributing to its high cost in India.
3. Limited Demand and Exclusivity
The Mustang is a niche product in India, appealing to a relatively small segment of car buyers who are willing to pay a premium for a high-performance, luxury sports car. This limited demand means:
- Ford does not benefit from economies of scale in India, as it would in markets with higher sales volumes.
- The exclusivity of owning a Mustang in India adds to its allure, allowing Ford to position it as a luxury product with a premium price tag.
This exclusivity and limited availability further drive up the cost of the Mustang in the Indian market.
4. High Maintenance and Insurance Costs
Owning a Mustang in India is not just about the initial purchase price. The cost of maintaining and insuring such a high-performance vehicle is also significantly higher. Factors contributing to this include:
- Expensive spare parts, which are often imported.
- Specialized servicing requirements that may not be available at all service centers.
- High insurance premiums due to the car’s value and performance capabilities.
These ongoing expenses make the Mustang a costly proposition for Indian buyers, further adding to its exclusivity.
Conclusion
The Ford Mustang’s high price in India can be attributed to a combination of factors, including steep import duties, shipping costs, limited demand, and high maintenance expenses. While these factors make the Mustang a luxury purchase in India, they also contribute to its status as a symbol of exclusivity and performance. For those who can afford it, owning a Mustang in India is not just about driving a car—it’s about making a statement.
Frequently Asked Questions
Which country has the cheapest Mustang?
It's a relative bargain in Romania and Germany where the flagship Ford Performance vehicle retails for $385,100. It's even cheaper in Puerto Rico, at $325,000, matching the US pricing. Canadians get the best deal by paying "only" $320,000 but the order books have been closed.
Why are supercars expensive in India?
The major reason is taxes: India levies 150--200% taxes on luxury and exotic cars. Where as USA has an average of 5.75 taxes Plus 15% luxury tax, and China has 5%. China charges only 10% import tax even on super luxury cars like Ferrari and Rolls Royce.
Why are American cars so expensive in India?
Prepare to get your mind blown! The customs duty on importing a new car is 102%. On old/second-hand cars it is 160% of the ex-showroom price. These costs raise your overall expense of owning a car to more than 200% of its original price.
What is the price of Mustang in India vs USA?
Add 110% duty to this figure and its USD 71,400 or INR 47,83,800. Ex-showroom price in India is INR 65,00,000.
Why is Mustang expensive in India?
It's because our Govt Imposes a heavy tax on fully built vehicles(CBU) that are imported from other countries. So the total cost shoots up to more than 2–3x of the price in the US. but why doesn't the Govt want people to enjoy the luxury of such cars by imposing such a high duty?
What is the richest car in India?
List of the Top 10 Most Expensive Cars in India for 2025
| S.No | Model | Price Range (In Crores) |
|---|---|---|
| 1 | Ferrari Purosangue SUV | ₹10.50 |
| 2 | Rolls-Royce Phantom | ₹8.99 - ₹10.48 |
| 3 | Lamborghini Revuelto | ₹8.89 |
| 4 | Rolls-Royce Spectre | ₹7.50 |
Which car is most luxury in India?
List of the Top 10 Most Expensive Cars in India for 2025
| S.No | Model | Price Range (In Crores) |
|---|---|---|
| 1 | Ferrari Purosangue SUV | ₹10.50 |
| 2 | Rolls-Royce Phantom | ₹8.99 - ₹10.48 |
| 3 | Lamborghini Revuelto | ₹8.89 |
| 4 | Rolls-Royce Spectre | ₹7.50 |
Why are Mustangs so expensive in India?
It's because our Govt Imposes a heavy tax on fully built vehicles(CBU) that are imported from other countries. So the total cost shoots up to more than 2–3x of the price in the US. but why doesn't the Govt want people to enjoy the luxury of such cars by imposing such a high duty?
Is Mustang a luxury car in India?
If you want to buy a luxury car with stunning design, premium features, and perfect safety features, the Ford Mustang GT will be the one for you. Keep reading this article to find the Mustang GT price in India, its features and specifications.
