Why is the Ford 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 factors contributing to the high cost of the Ford 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: India imposes a customs duty of up to 100% on imported cars, effectively doubling the base price of the vehicle.
- GST (Goods and Services Tax): Luxury cars like the Mustang are subject to a high GST rate of 28%, along with an additional cess of up to 20%.
- Registration and Road Tax: State-specific taxes further add to the overall cost of owning the car.
These taxes and duties significantly inflate the Mustang’s price, making it a luxury purchase for most Indian buyers.
2. Shipping and Logistics Costs
Since the Ford Mustang is imported from the United States, shipping and logistics costs also contribute to its high price. Transporting the vehicle across continents involves substantial expenses, including freight charges, insurance, and handling fees. These costs are ultimately passed on to the buyer.
3. Limited Availability and Exclusivity
The Ford Mustang is not mass-produced for the Indian market, and its availability is limited. This exclusivity adds to its appeal as a luxury item, but it also drives up the price. Limited supply combined with high demand among car enthusiasts ensures that the Mustang remains a premium offering in India.
4. High-End Features and Performance
The Ford Mustang is a high-performance vehicle equipped with advanced features, a powerful engine, and cutting-edge technology. These attributes make it a desirable car, but they also contribute to its cost. Buyers in India are paying not just for the car itself but also for the prestige and performance associated with the Mustang brand.
5. Currency Exchange Rates
The exchange rate between the Indian Rupee (INR) and the US Dollar (USD) also plays a role in determining the Mustang’s price. Fluctuations in currency value can impact the final cost of the car, often making it more expensive for Indian buyers.
Conclusion
The Ford Mustang’s high price in India is the result of a combination of factors, including import duties, shipping costs, limited availability, high-end features, and currency exchange rates. While these factors make the Mustang a costly purchase, its iconic status and unmatched performance continue to attract car enthusiasts who are willing to pay a premium for this legendary muscle car.
Frequently Asked Questions
Is BMW cheaper in the USA than India?
Mercs and BMWs are like 40% cheaper in the US than in India.....
What is the price of Mustang in USA vs India?
The Mustang cost Rs 74.61 Lakhs. The same model was sold in the US for $32,100, which estimates to Rs 23.30 Lakhs when converted to INR.
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?
How much does a Ford Mustang cost in India?
74.61 Lakh. It is available in 1 variant, 4951 cc engine option and 1 transmission option : Automatic. Other key specifications of the Mustang include a ground clearance of 137 mm. and The Mustang is available in 6 colours.
Which country has the cheapest Mustang?
Yes, the new mustang is cheaper in Canada, at least before taxes. I love my Dark Horse!
Is Mustang cheap in the USA?
Here is the complete 2024 Ford Mustang® price list: Mustang® EcoBoost® Fastback: MSRP from $30,920. Mustang® EcoBoost® Premium Fastback:MSRP from $36,445. Mustang® EcoBoost® Convertible:MSRP from $39,020.
Why was the Ford Mustang discontinued in India?
The American brand ceased operations in India in 2021 due to low sales and financial losses in the highly competitive Indian automotive market. However, rumours about Ford's comeback gained traction when the company was included in the government's PLI incentive scheme for 20 brands in February 2022.
Why are cars so expensive in India compared to the USA?
Overall, the combination of high taxes, import duties, limited manufacturing scale, high cost of raw materials, and limited infrastructure are some of the key factors that contribute to the relatively high cost of cars in India.
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?
Can I buy car from USA to India?
The vehicle can only be imported from the country where it was manufactured or assembled. The vehicle must have been built and developed overseas. If you are importing a car, then it should be a right-hand drive. The vehicle must be brand new and should not have any history of being rented, used, or given out on lease.
