Luxury cars are significantly cheaper in Dubai compared to India and even the US, mainly due to differences in tax structures.
For example, a Toyota Land Cruiser that costs around ₹2 crore in India is available for just ₹30 lakh in Dubai, an 80% price gap. Similarly, a BMW X5 costs ₹1 crore in India but only ₹55 lakh in the US and ₹75 lakh in Dubai.
Investment banker Sarthak Ahuja explains that India's high import duties (60–100%), 28% GST, additional cess, and state road taxes drastically inflate car prices, taxes alone make up about 45% of a luxury car's on-road cost in India.
In contrast, Dubai imposes minimal import duties, and final prices are shaped by local demand, shipping efficiencies, and bulk imports.
The US has a relatively moderate tax regime, making prices there lower than India but still higher than Dubai for many models. However, Ahuja notes that locally manufactured cars like Maruti, Tata, and Hyundai remain competitively priced in India.
Ultimately, Dubai's low tax environment and efficient logistics make it one of the most affordable places to buy luxury vehicles.
