Your dream British supercar just got cheaper, thanks to Brexit
Fancy a Rolls-Royce Ghost? Well there's good news. The ultra-luxury car's price has dropped from Rs. 5.25 crore to Rs. 4.75 crore, all thanks to the Brexit. A steep depreciation in the pounds sterling's value has allowed UK-based luxury and supercar manufacturers Rolls-Royce, Bentley, Aston Martin and Land Rover to cut car prices by Rs. 20 lakh to up to Rs. 1 crore.
The pound's value has depreciated from Rs. 108 to Rs. 81 over the past 18 months. As a result, the cost of a Range Rover Sport is down by Rs. 31 lakh to Rs. 1.04 crore; the Range Rover Vogue by Rs. 41 lakh to Rs. 1.97 crore. The Aston Martin DB11 is Rs. 21 lakh cheaper, now costing Rs. 4.27 crore.
The Rolls-Royce Phantom's price has fallen to Rs. 7.8-8 crore from Rs. 9 crore. Italian supercar maker Ferrari, which bills its India sales in the pounds currency, has also seen a rate cut. As a result, Ferrari 488's price has witnessed a Rs. 30 lakh drop to Rs. 3.6 crore. The car prices mentioned in this timeline exclude car customizations, options and accessories.
In 2016, nearly half of the 200 or so cars priced over Rs. 2 crore sold in India were British. The recent price cut is expected to boost sales of British cars in India, which is home to the third most number of billionaires. This could threaten sales by Italian and German manufacturers who bill India sales in dollars or euros.
In recent weeks, there's been a huge increase in enquiries for ultra-luxury cars which could convert to sales, said Sharad Kachalia, director at Navnit Motors that imports Rolls-Royce and Ferrari cars in India. "The market situation is very positive. All uncertainties have gone away, with a relatively stable government (in India) and benefits of currency depreciation being passed on," Kachalia said.
There's been a 70% increase in the tax and duties on vehicles costing over Rs. 2 crore over the past 5 years, deterring their sale. However, the upcoming Goods and Services Tax is expected to make tax policies more stable, allowing the market to grow.
