Im doin research in indian market..y there is huge difference in car prices between delhi n chennai??

Question

Im doin research in indian market..y there is huge difference in car prices between delhi n chennai??

Answer 1

In India, every state has their own Taxing Structure based on the guidelines from Central Government and / or Reserve Bank. Also depending on the state's developments there are few concessions for states and Union Teritories to provide them an opertunity to grow further.

In general, Union Teritories (Delhi is an Union Teritory) have Tax Relaxations for most of the Businesses. Thats why you will find all ( I mean most of the ) commodities in Union Teritories will be cheaper like Delhi, Goa, Podicherry, etc..

Apart from these, for manufacturing facilities also, where Tax Exemptions can not be passed on, there will be Tax holidays. Say, like first 5 years there will be no tax or Excise Duty on the trade. To fully understand, you need to look into the Local Taxes / Duties for various commdities in every state and union teritories.

Answer 2

DELHI is much cheeper than chinnai

Answer 3

It is mainly due to transportation cost from Delhi to Chennai (I presume your purchase is Maruti) Difference in taxation between state to state also makes the price higher.

Answer 4

population density, economical condition of the people,

Answer 5

Because of the tax. Tax is less in Delhi. Even petrol price is cheaper in delhi by 5 rupees for a litre.