Proportional Costs of Car Components: A Comprehensive Breakdown

Proportional Costs of Car Components: A Comprehensive Breakdown

When considering the cost of a car, it is important to understand the proportional distribution of expenses across its major components. This article will provide a detailed breakdown of the typical cost distribution for a car priced at approximately 7 lakhs (approximately ?700,000) on-road price.

Overview of the Car on Road Price

Let's consider a car priced at 7 lakhs (approximately ?700,000) on road price. This price includes all the major components and additional costs such as taxes, emblems, and warranties. After adding the emblem of the car company, the price can increase by 1 to 2 lakhs, depending on the brand value of the company.

Components of the Car

The car can be broken down into several major components:

Engine: The engine is a crucial component of the vehicle, and its cost can vary based on the performance and specifications. For a car priced at 7 lakhs, the engine might cost around 3 lakhs (approximately ?300,000). Body and Chassis: The body and chassis are significant components that form the structural framework of the car. In this context, the cost of the body and chassis is estimated to be around 1.5 lakhs (approximately ?150,000). Equipment List: The equipment list includes various features and comfort additions that enhance the car's functionality and luxury. For a good 2-liter engine, the equipment list could cost around 1.5 lakhs (approximately ?150,000). Tyres and Alloys: The cost of tyres and alloys, which are essential for driving and handling, is estimated to be around 25,000 (approximately ?25,000).

Price Increase Due to Emblem

Once the emblem of any car company is affixed to the car, the price automatically increases by 1 to 2 lakhs, depending on the brand value of the company. This increase can significantly affect the final on-road price of the car. For instance, if a premium brand adds its emblem, the price can soar to 9 lakhs (approximately ?900,000) or even more.

Conclusion

Understanding the proportional costs of car components helps in appreciating the complex and intricate details that go into creating a vehicle. By breaking down the cost into its major components, it becomes easier to identify the value and quality of each feature and understand the overall cost structure of a car.

If you're in the market for a new car, it is essential to consider not only the initial on-road price but also the cost distribution across the major components. This knowledge can help you make a more informed purchase decision, ensuring you get the best value for your money.