The Indian tax structuring for vehicles is something that should really be examined (by some clear-headed folks). I keep mentioning (on this forum and elsewhere too) that cars in India are priced much higher than anywhere else in the world. This contributes to people using their existing cars for longer periods and not replacing them often. This is a good thing, it avoids wastage and saves the environment, but is bad for the economy and the auto industry.
Also it is bad for the people - their standard of living takes a hit. A person who would be able to afford a good sedan abroad would only be able to afford an entry-level hatch here with the same pay.
Quote:
Originally Posted by aniketi But is there potential for that? Its there but not that much where all car manufacturer will be able to sell large number of cars.
....
Every month or year you can't expect market to grow. |
As a developing country with a large population and improving per capita income, ideally yes, there is a lot of potential and the market can definitely grow every month and year. The problem is with affordability - view my statement above. Car prices are sky high and people don't want to buy cars often.
If cars here were priced comparably to other places of the world, I for one would upgrade my car every 2 years at least.
Quote:
Originally Posted by aniketi Other thing i want to say is infrastructure in our country is not improving. |
Agree with you completely. I feel this is also one of the main reasons for car sales to decline. And it's totally the government's fault. Lack of infrastructure, and a lackadaisical attitude towards the development of it can cause even the most ardent car lover to defer a car purchase.
In the case of Mumbai, I personally know a whole bunch of people who do not want to buy cars because of the traffic situation and because the roads are so bad.
Quote:
Originally Posted by aniketi They prefer public transport like Bus, train, air travel etc. I also do it some times to get piece of mind. Other factor is our city roads are already getting flooded with cars. Traffic has become major headache in our daily routine in all the major cities in India. Parking problem, parking cost adds to it. Last factors are high interest rates & increasing fuel costs. We cant do much about it. Due to all these factors many people are not willing to buy new cars or change there cars. |
Yes, agree with you.
Quote:
Originally Posted by aniketi So IMO if manufacturers limit there production to realistic numbers, they will be more happy & profitable. What is the point in making facility of making 1 Lac cars per year & selling only 30-40 thousand?? |
IMO this is the wrong approach. We should be looking at how we can sustain the nation with an increased number of cars rather than to reduce the number of cars sold, thereby reducing the living standards of people in India. Development in infrastructure and reduction in taxes by curbing corruption is the way to go.
Quote:
Originally Posted by rajshenoy Automobile industry is slowing down, but at the same time we are seeing long waiting periods for new launches. Which means people are no longer going for same old trusty brands and models and want more bang for their buck.
Auto makers need to introspect as well. Agreed taxes are high in india, but then cars are priced pretty high too(Example: Duster sells cheaper in UK where it gets exported form india). Toyota still thinks they can charge a premium for "T badge" and T quality even if they dont give anything else. GM is doing everything to cut costs by giving us chinese products.
So car sales are falling, but there are also examples about waiting periods on new launches. Which gives me hopes that if Auto makers focus on launching more new models and more global launches(and not some 3rd world models) they will surely find customers. |
You make some valid points. Our market was so ignorant and underdeveloped at one point, that, for example, we happily lapped up the Toyota Qualis when it was already 10 years old in the international market and towards the fag end of its product life cycle!!
However now that the trends are changing and due to the fact that people are more educated and aware of the international automotive happenings than ever before, the market has also started demanding more from car manufacturers.
Most of the car manufacturers (Tata comes foremost to mind), are still pushing the same old unwanted junk onto the shelves expecting people to still buy them.
Having said all this, I would like to quote the famous words of the Mayor of Bagota: