This SUV costs ₹2 crore in India, ₹30 lakh in Dubai: Investment banker breaks down why

Ever looked at a luxury car’s price tag in India and wondered why it feels so high? Turns out, you’re not imagining things. 

A ₹2 crore Land Cruiser in India costs just ₹30 lakh in Dubai. That’s an 80% price difference — for the same car.

“The difference in pricing is staggering,” says investment banker Sarthak Ahuja. “A BMW X5 that costs ₹1 crore in India is available for just around $65,000 (₹55 lakh) in the US — nearly half the price.” 

He points out that a Range Rover Sport, priced at ₹2 crore in India, would cost only about ₹80 lakh in the US, or roughly 60% cheaper.

But Dubai is where the math really flips. “A Fortuner that costs ₹50 lakh in India sells for ₹35 lakh in Dubai, and the Land Cruiser is almost 80% cheaper,” Ahuja adds. Even the BMW X5 is around ₹75 lakh in Dubai — still about 25% cheaper than India.

So what’s going on here? According to Ahuja, it all comes down to India’s punishing tax regime. “Import duties on luxury cars are between 60% and 100%, GST adds another 28%, then there’s a cess, and finally state road taxes,” he explains. “Effectively, 45% of the car’s on-road price in India is just tax.”

In contrast, Dubai has minimal import duties, and the final price depends more on factors like local demand, shipping routes, and bulk ordering. “That’s why price differences vary model to model, even if taxes are low,” Ahuja notes.

However, he adds that not all hope is lost for Indian buyers. “If you’re looking at a Maruti, Tata or Hyundai, you’re better off buying in India — they’re made here, and prices are competitive globally.”