Why Bugatti Veyron or Koenigsegg Agera failed to sell a single unit in India
Steep rise in import duty, sluggish economy, political instability and lack of adequate infrastructure have all contributed to low sales of ultra luxury top end vehicles. These slow sales have resulted in some of these marquee brands exiting the country. In about three years of existence in India, Swedish brand Koenigsegg failed to sell a single unit of Agera, whereas Bugatti too met a similar fate in India.
Apart from these two, Germany’s Gumpert has also not generated any interest among Indian buyers which has led to its exit from Indian markets. There are a number of reasons why luxury cars fail to attract Indian billionaires. The first is its high import duty which is about 179%. This fact is coupled with basic lack of infrastructure, lack of good roads within the country and dearth of efficient after sales service.
The hike in import duty has taken a toll on sales, coupled with a weakening Indian rupee. This has all contributed to making these super luxurious vehicles even costlier and driving away any prospective buyer. In a country where all super luxury cars are imported, buyers look upon this high import duty as a tax liability and a waste of massive amounts of money.
Price of Bugatti Veyron in India is at Rs 35 crores and that of Koenigsegg Agera is at Rs 16 crores. An individual, who can afford such a car, surely has a house in a foreign country where he/she can buy the same car for third of it’s India price tag and get much better after sales service, along with better roads to drive the car. So why would the individual buy such an expensive car in India?
The video below was shot when the Bugatti Veyron was on a promotional run in India. You can see for yourself what happens when you drive a car worth Rs 35 crores on an Indian road.
Source Economic Times