Fiat 500 For Rs.8 Lakhs?

[AMG]

Rumors are that Fiat is going to start production of the Cinquecento (Fiat 500) at their Ranjangaon facility, near Pune. If it turns out to be that way, the cost will come down by a whooping 40 – 50 %

Souce: Motoroids

Fiat is re-launching its flagship compact marquee Cinquecento, popularly known as Fiat 500, in the next few months. This follows the successful entry of Volkswagen’s iconic Beetle, which has surpassed original sales targets and created a flutter in the luxury small car space.

Source: Economic Times




500 for 8 Lakhs?

 

[Shynish M]

Fiat 500 at 8 lakhs! Ridiculous! Fiat 500 is the entry level car in international market; the same way MSIL has its ALTO. Just because of the brand value, I don't think its a logical decision to spend 8 lakhs on it, which can accomodate 2 and hardly 2 Adults + 2 kids (they should never grow up!). Yes, I may consider it if I am rich enough to spare 8 lakhs and then forget about it

 

[AMG]

Fiat 500 UK price 1.3 MJD Lounge variant= 11000 Pound
I EURO = 61 Rs.
11000*61 = 671,000 Rs.

And you call this an entry level hatch?
-----------Next Post-----------
Hey,
How do i know who voted for what?

 

[Akash]

Yes!!!GAME ON!!
It wont be wise to call it an entry level hatch.
Imo at a tag of 8lacs it will sell in decent volumes, though the sales will be lower than other hatches mainly because of its lower passenger carrying capacity.

 

[Marun]

I guess this little monster gives a good mileage.

 

[*Arkin_Young*]

Rs 8 lakh? That's it? That's like sooooo cheap compared to the old price. (I'm not being sarcastic) Game On.. Game On.. For sure.

Why? If some guy who has a 320d and an Endeavour, and needs a lifestyle vehicle, something unique that everyone will envy and stare at, something not run - of - the mill and his budget is <Rs10 lakh, what options does he have? A Verna? A Getaway that he doesn't need and doesn't appeal to him?

I say this price is just great.

Some people seem to be treating the 500 here as a run of the mill hatch, but it is more of a lifestyle vehicle.

 

[Shynish M]

Fiat 500 UK price 1.3 MJD Lounge variant= 11000 Pound
I EURO = 61 Rs.
11000*61 = 671,000 Rs.

And you call this an entry level hatch?

Your calculations are based on exchange rate buddy. And it is not the way you should convert when you are finding the equivalent price in another country. Products in each country is priced according to the living cost index and income levels. So when you are converting the cost, you should consider this factor too. To reflect differences in income levels across the world, countries are divided into 5 income bands and local incomes adjusted to the levels shown in the ranges as below:



First convert the amount to GBP, then multiply that figure by the multiplier allocated for your country in the bands in the table above.

For example: If the cost is Rs. 2,00,000 /- the equivalent British pounds is approximately 2801 GBP. Now, multiply this with 5.3 which is the the factor for Band D. So that will come to approximately 14845 GBP.

This means that an Indian who can spend 200000 INR has the same buying power as of a British who can spend 14845 GBP

UK price of FIAT 500 is just 11000 GBP buddy! So I stick to my point, its just another entry level hatch

 

[AMG]

Ummmm....
The calculation is TOO INTRICATE and COMPLICATED for me.
Please explain in simpler language.

 

[Shynish M]

Simply said, money exchange rate and cost of living are two different aspects. When we exchange money, we will use the exchange rates. When we have to find out the equivalent price of some thing in another country, then we have to consider the cost of living factor.

For example: A burger costs around 30 DKK here in Denmark which will cost some around 50 INR in India.

30 Danish kroner = 242.894503 Indian rupees

So, I can not say that I am eating a burger costing 242 INR. The fact is, my burger is priced at the same level. The way you can spend 50 INR in India is the same way I will spend 30 DKK here in Denmark. Indian 50 INR and Danish 30 DKK has the same buying power, however has different exchange rate!

The same principle goes true with any other country. Hope I have made it clear [thinking]

 

[AMG]

Yes, now the idea is clear.
You mean relative cost of living, dont you?

Hey dude, get a fact clear, It is the exchange rate that matters, not Relative cost of living.

 

[Shynish M]

Hey dude, get a fact clear, It is the exchange rate that matters, not Relative cost of living.

Okay !!

 

[RSM]

Fiat 500 at 8 lakhs! Ridiculous! Fiat 500 is the entry level car in international market; the same way MSIL has its ALTO. Just because of the brand value, I don't think its a logical decision to spend 8 lakhs on it, which can accomodate 2 and hardly 2 Adults + 2 kids (they should never grow up!). Yes, I may consider it if I am rich enough to spare 8 lakhs and then forget about it

In my opinion, comparing Alto and 500 is ridiculous.
Currently 500 is coming as CBU and govt lavies 100+% as tax. SO Cost will directly be more than doubled.

Shynish, how much Bettle in costing in international market and how much should it be priced in India?

 

[AMG]

@ RSM
Please read the post #3 of this thread.
The price mentioned is UK price.
Source: TopGear UK

 

[Shynish M]

In my opinion, comparing Alto and 500 is ridiculous.
Currently 500 is coming as CBU and govt lavies 100+% as tax. SO Cost will directly be more than doubled.

Shynish, how much Bettle in costing in international market and how much should it be priced in India?

I was not comparing buddy! I just wanted to convey that FIAT 500 is the base model from FIAT in international market. I completely agree that if the the car is imported as CBU, price will be a bomb.

VW Beetle story is different and is any day better than FIAT 500 (opinion may differ though). In UK its price starts from 13000 GPB and goes all the way up to 22250 GPB. Point to be noted: VW Jetta price starts from 15840 GPB!

Another point we have to consider for an international manufacturer is the investment they have to make in India. Since both FIAT 500 & VW Beetles are not a volume seller, they have to put a balanced price tag. Considering all these factors, IMO, the base version of Beetle (produced in India) should come around 5 lakhs plus. And FIAT 500 (produced in India) should be 4 lakhs plus. But this is no way possible because of our tax policies and ROI factors.

I am happy that FIAT will reduce 500's price to 8 lakhs. But for me its not an exciting news as a practical buyer. However, for those who are rich enough to spend this amount; it will be a great news! After all Indian buyers are so strong that all super luxury models are coming to our land

 

[AMG]

@ shynish
What will you prefer?
An i20 Asta top model diesel with 2 airbags or an 500 with 4 airbags and a proven 1.3 MultiJet.
Both will cost the same.