Due to high import taxes, even non-luxury cars can cross the Rs 1 crore threshold in the neighbouring nation

Nepal, our neighbouring country that shares its mountains with us, is a market for many international carmakers, including some from India. Carmakers that operate in both India and Nepal have a similar lineup in both countries, but the prices vary significantly. Some of the popular cars sold in India are three times more expensive in Nepal. Here are five examples of eye-watering price differences due to import tariffs:

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Hyundai Creta

The Hyundai Creta, which was launched in Nepal in 2015, is more than 2.5 times as expensive as in India. In Nepal, the Creta comes with the same powertrains as the India-spec compact SUV. It is available with a 116PS, 1.5-litre diesel engine paired with a 6-speed manual and 6-speed automatic transmission, and a 115PS, 1.5-litre petrol engine which comes with a 6-speed manual and a CVT gearbox.

Maruti Grand Vitara

The Maruti Grand Vitara was launched in India in September last year, and this year in March, it made its way to the Nepal market as the Suzuki Grand Vitara. As shown in the table above, the price of the top-spec variant of this Maruti model is nearly three times higher in Nepal compared to India.

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In Nepal, the Suzuki SUV is equipped with the same petrol and strong hybrid powertrain options as the India-spec model. It also has the same variant-list and feature distribution.

Tata Safari

Except for the Tata Tigor EV and Punch, Nepal offers the full lineup from Tata Motors. The Tata Safari was launched in Nepal six months after its release in India in 2021. In Nepal, the price of the Safari crosses the NPR 1 crore mark, and when converted to Indian currency, the top-spec variant is close to Rs 70 lakh.

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Similar to India, the Tata Safari is equipped with a 2-litre diesel engine (170PS/350Nm) in Nepal, available with either a 6-speed manual or a 6-speed automatic transmission. However, Tata Motors does not offer any special editions in Nepal, such as the Dark, Red Dark, and Adventure editions.

Hyundai Tucson

In contrast to India, Nepal offers a wider range of premium Hyundai SUVs. The Hyundai Tucson, the largest SUV sold by the Korean automaker in India, is also available in Nepal for a significantly higher price. The top-spec variant of the Tucson, which is priced at Rs 35.46 lakh in India, costs Rs 1.02 crore in Nepal.

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In Nepal, the Hyundai Tucson is equipped with the same 2-litre petrol engine (156PS/192Nm) and diesel engine (186PS/416Nm) as the India-spec model. Additionally, Nepal also offers a 1.6-litre turbo-petrol engine (180PS/265Nm) that is not available in India, along with a manual gearbox option for the larger petrol engine, which is absent in India.

Toyota Fortuner

Lastly, the Toyota Fortuner, which is already quite expensive in India, is the most expensive model on this list. Even the base-spec model in Nepal starts from Rs 1.39 crore in Indian currency. In Nepal, the Fortuner is available with the 2.8-litre turbo-diesel engine (204PS/ up to 500Nm) paired with a 6-speed manual and a 6-speed automatic transmission, and it comes with 4WD.

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The India-spec model also offers a 2.7-litre petrol engine (166PS/245Nm) with a 5-speed manual and a 6-speed automatic transmission, with the option of a two-wheel-drive system. However, the Fortuner Legender is not available in Nepal.

Reason for Such High Prices

None of these models are manufactured in Nepal and are brought into the country as imports. While several factors affect the pricing of a car, import tariffs play a significant role. The high import tariffs imposed by the Nepalese government make cars very expensive.

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While the Indian government also imposes heavy tariffs on imported cars, making them almost twice as expensive, the tariffs imposed by the Nepalese government outweigh those in India by a significant margin.

Let us know in the comments below which one of these models surprised you the most with its prices.

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