Go Back   Team-BHP > BHP India > The Indian Car Scene


Closed Thread
 
Thread Tools Search this Thread
Old 21st March 2013, 15:13   #16
BHPian
 
sajusherief's Avatar
 
Join Date: Mar 2013
Location: Bangalore
Posts: 175
Thanked: 78 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by tez View Post
maybe ask your friend to cancel his booking and see the fun...
Quote:
Originally Posted by supremeBaleno View Post
It is over-confidence and even arrogance when a seller says "no offer will ever come on so and so car".
But I dont think so. As long as common perception of 'high resale value' for swift exist, i dont see even the slightest chance for it's demand to come down for atleast next 4 years !

PS: But never i mean to say that it's a bad car, it definitely deserves to be the nation's best seller as an overall package !
sajusherief is offline  
Old 21st March 2013, 15:27   #17
Team-BHP Support
 
Jaggu's Avatar
 
Join Date: May 2004
Location: Bangalore
Posts: 17,748
Thanked: 7,465 Times
Default Re: ET Article: Indian auto market hits new low

Yes the sales definitely seems to have come down, markets are choppy world over and spending is very cautious, so obviously spending on luxury item like cars have come down. But on the ground when you approach a dealer for a vehicle, discounts are also not that great. After serious haggling you get free insurance and some loyalty bonus, which is across almost all brands (not so new models ie). But apart from that, not much of discounts.

All this talk about 20% discount is still a mystery to me?!
Jaggu is online now  
Old 21st March 2013, 16:51   #18
Distinguished - BHPian
 
supremeBaleno's Avatar
 
Join Date: Dec 2005
Location: Weekdays@Chennai, Weekends@Kerala
Posts: 5,164
Thanked: 1,638 Times
Default Re: ET Article: Indian auto market hits new low

I also don't know of any discount on Swifts in Kerala. What I did hear and which surprised me no end was the fact that Swift-Ds were available off the shelf, but there was a waiting period on the petrol versions. Exact opposite of what was the situation till some months ago. I think this could be because MSIL dropped production on their petrol lines recently due to low demand and not really due to the 50p per month hike in diesel prices.

Quote:
Originally Posted by sajusherief
As long as common perception of 'high resale value' for swift exist,
We would be going off-track focussing on Swifts, since this is about cars in general, but since you mentioned it, I also thought the resale was overhyped, but was floored to see the resale value in the following post on another thread.
Quote:
Originally Posted by swiftdiesel View Post
My previous car was a Swift Vdi 2009 model.
Showroom price: 570000 (2009)
Sold in 2012 after an accident and 60000 kms later for 500000 (5 lakhs)
supremeBaleno is offline   (1) Thanks
Old 21st March 2013, 19:25   #19
BHPian
 
hellmet's Avatar
 
Join Date: Oct 2005
Location: GTA
Posts: 810
Thanked: 637 Times
Default Re: ET Article: Indian auto market hits new low

Like someone once said "growth for the sake of growth is like cancer". If the market has slowed down due to 'n' reasons, then it should let be. Artificially trying to encourage growth by lowering interest rates (cheaper loans) or subsidizing fuel may provide temporary growth but it could all come crashing down later. Markets are self healing and will find a way to adjust to the new situation. And who knows, this might even liven up our used car market a bit.
hellmet is offline   (1) Thanks
Old 21st March 2013, 20:42   #20
BHPian
 
Join Date: Aug 2007
Location: Mumbai/BLR/USA
Posts: 928
Thanked: 190 Times
Default Re: ET Article: Indian auto market hits new low

To have a sustained growth, the interest rates have to come down drastically as cars are generally a depreciating asset. Somehow none of the monetary measures (bank rate policy, cash reserve ratio etc. ) are working and bringing the inflation under control. High inflation and high interest rates are like a vicious circle, coupled with other political , job uncertainty, fuel price and other market factors are slowing thing down across the board.

In general cars (small/mid-size) are priced at a significantly higher rate compared to average middle class annual earnings, this has to change to boost consumption. Car prices have gone up significantly in the name of high commodity prices and rupee devaluation.

Low demand has finally arrived at Maruti’s doorsteps and discount’s on flagship model as Swift is an leading indicator of deep trouble. Pipeline of new launches from Honda and Ford can also be attributed to low demand as informed people are delaying their purchases. We can see anticipate much deeper discounts if things don’t turn around soon.
tj123 is offline  
Old 21st March 2013, 22:16   #21
BANNED
 
Join Date: Mar 2006
Location: mumbai
Posts: 2,004
Thanked: 2,025 Times
Infractions: 0/1 (4)
Default Re: ET Article: Indian auto market hits new low

True indicator of a sluggish economy is when commercial vehicle sales dip. As of now, I dont think there is any severe dip in commercial vehicle sales.
Also its quite stupid of India to go in for a car based economy like USA. We simply dont have the land/resources or oil reserves to ape them. A more sustainable way is to build up public transport and renewable sources of energy to fuel vehicles.
PC's tax on vehicles and increasing fuel prices have curbed this ever growing demand for new cars, high interest rates have also helped.

Most of the inflation is caused by black money circulating in the market, black money hoarders are not affected if the interest rates keep increasing. The only way to curb this menace is to prevent black money transactions. Simple measures like any asset sold over x amount will need Pan card details of the buyer will stop black monied people from spending their loot.

Last edited by apachelongbow : 21st March 2013 at 22:20.
apachelongbow is offline  
Old 21st March 2013, 22:54   #22
Senior - BHPian
 
rajeev k's Avatar
 
Join Date: Jul 2009
Location: Emerging Metro
Posts: 3,306
Thanked: 1,730 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by supremeBaleno View Post
I also don't know of any discount on Swifts in Kerala. What I did hear and which surprised me no end was the fact that Swift-Ds were available off the shelf, but there was a waiting period on the petrol versions.
I talked to a Maruti dealer's sales person on Swift diesels and was told that is available off the shelf, selective colpurs but no discounts or freebies as yet. On Ritz discount ids Rs 25000 and a similar amount as exchange bonus.
But Dezire buyers still have to do some waiting. My friend is getting a Dezire petrol after 55 days of waiting and was told that petrol engines are not made everyday.
Another funny aspect is that an Ernakulam used car dealer told me two days ago that demand for small petrol used cars have increased slightly of late. I was, in fact discussing with him the sale of my Alto.
rajeev k is offline  
Old 22nd March 2013, 09:04   #23
BHPian
 
sajusherief's Avatar
 
Join Date: Mar 2013
Location: Bangalore
Posts: 175
Thanked: 78 Times
Default Re: ET Article: Indian auto market hits new low

can i comprehend it like this - This is the best time to buy a car! Almost all manufactures are offering heavy discounts and a lot of accessories as freebies ! Had i not bought my car last year definitely i would have gone for it this year. Then, i wonder what's holding back the potential buyers to buy a new car and thus a sluggish automotive industry ?
sajusherief is offline  
Old 22nd March 2013, 10:15   #24
BHPian
 
JoshMachine's Avatar
 
Join Date: Jan 2013
Location: Pune
Posts: 143
Thanked: 155 Times
Default Re: ET Article: Indian auto market hits new low

What goes up, must come down!
Every economic instituition - be it a macro market like export/import at a national level or a relatively "micro" one like the domestic car market needs to correct itself in order to be sustainable over a long term. In other words, all markets follow the classical sinusoidal wave pattern resulting in bull (high demand) and bear (considerably low demand) phases.
We can see this phenomenon across - equity markets, domestic car market, real estate..you name it!
JoshMachine is offline   (1) Thanks
Old 22nd March 2013, 15:25   #25
ARG
BHPian
 
Join Date: Jan 2009
Location: KA 01
Posts: 45
Thanked: 14 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by sajusherief View Post
can i comprehend it like this - This is the best time to buy a car! Almost all manufactures are offering heavy discounts and a lot of accessories as freebies ! Had i not bought my car last year definitely i would have gone for it this year. Then, i wonder what's holding back the potential buyers to buy a new car and thus a sluggish automotive industry ?

That, my friend, is economics!

The scene should go further in favor of the buyer, in the next couple of months. Sadly, does not help my case. I've finally committed delivery of my car to my buyer next week, and plan to take delivery of a new car the week after.

And Ford, you lost another one from the Ecosport queue.


On the bright side, I might be in the market for another car, by Q32013.
ARG is offline  
Old 22nd March 2013, 19:12   #26
BHPian
 
sri2012's Avatar
 
Join Date: Nov 2011
Location: Chennai
Posts: 31
Thanked: 24 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by apachelongbow View Post
True indicator of a sluggish economy is when commercial vehicle sales dip. As of now, I dont think there is any severe dip in commercial vehicle sales.
Also its quite stupid of India to go in for a car based economy like USA. We simply dont have the land/resources or oil reserves to ape them. A more sustainable way is to build up public transport and renewable sources of energy to fuel vehicles..
I completely agree with you on your views on "public transport".

http://www.team-bhp.com/forum/commer...ary-trend.html

http://www.team-bhp.com/forum/commer...own-india.html

With regards to commercial vehicle sales, the market is bleeding for more than 6 moths now. Market Leaders are having pay-cuts, reduction of working days.

And this is expected to continue for atleast 4-6more months.
This is very unfortunate. Lets hope for the best.
sri2012 is offline  
Old 2nd April 2013, 07:41   #27
Team-BHP Support
 
moralfibre's Avatar
 
Join Date: Dec 2004
Location: MH-12
Posts: 6,622
Thanked: 6,144 Times
Default Re: ET Article: Indian auto market hits new low

The Times of India report an update on the situation:

News article.

I eagerly await Team-bhp's report on March 2013 sales figures.
moralfibre is offline   (1) Thanks
Closed Thread


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Repeat EXAMM! The ghost of 1st low vs 2nd low descent haunts us again... and how! Tejas@perioimpl 4x4 Excursions 41 23rd September 2010 14:16
WSJ Article : Indian Auto Boom Gets Bubbly. StarVegabond The Indian Car Scene 6 2nd September 2010 16:49
Fiat Palio to Wane from Indian Auto Market (from cartradeindia) subscrive The Indian Car Scene 27 28th February 2010 18:35
Auto hits my car from behind zaks Street Experiences 18 8th June 2009 10:05


All times are GMT +5.5. The time now is 19:18.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks