Why there is such a wide difference between the prices of same capacity bikes of Honda and Yamaha?
The difference between the prices of same capacity bikes of Yamaha and Honda depends largely on the amount of localization the company has for its products. The products with 100 percent localization has a difference due to their quality of material being used and number of features being provided to the rider. This difference is generally kept as low as possible so that the product stays in the competition. The other bikes, which are brought as CBU’s to the Indian market have huge difference between their prices. The real problem behind the thing is the 120 percent import tax. Suppose you import a INR 1,00,000 vehicle. It will cost you INR 2,20,000 on the arrival. The other thing bought for INR 1,20,00 will cost INR 2,64,000. The INR 20,000 difference increased to INR 44,000 which makes the scenario worse for the companies as well as the customers.