Team-BHP - Car buyers - Are you awaiting an automobile fire sale in Q1 2020?

Industry is going through a slowdown primarily attributed to lack of easy loans in the market. I believe there is a small percentage of buyers waiting for Q1 2020 (BS6 deadline) before buying a new car and that includes myself. With a slowdown on one side and a firm date to liquidate BS4 stocks on the other, there is enough to believe that good things come to those who wait. This category has access to capital. Could this be another factor sending the slowdown on a spiral?

Sadly there is no car in the market that I desire even if given at half the price.

I am looking for a sub 20 Lakh station wagon/ MUV with Proven Crash worthiness, Airbags, Modern Automatic (not Maruti 4 speed) , Cruise Control, Fully flat folding rear seats, a powerful AC and a 100 Bhp + Engine.

The only car that I am interested in gawking at is the Triber, but it has no automatic or a decent engine.

I don't know about everyone else, but I can say for myself and others in my family who are looking for a new vehicle that there really isn't anything exciting in the market at a reasonable price right now. I booked and cancelled Harrier because it didn't have an automatic. Cancelled Seltos because it just wasn't VFM to me. Under 20 lakhs, there is not a single vehicle that ticks all the boxes and 20 lakhs is not a small amount. Vehicles have only become more and more expensive in the last 6-8 years and I think the slowdown is self inflicted more than anything else.

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Originally Posted by sharninder (Post 4652070)

Vehicles have only become more and more expensive in the last 6-8 years and I think the slowdown is self inflicted more than anything else.

Could not agree more! This was inevitable and auto industry has no one but itself to blame. It was only a matter of time before an average Indian car buyer realized that he is being taken for a royal ride. There is a limit to selling bling gizmos on wheels at atrocious prices!

I have not voted for any of the alternatives. Have decided next time I buy a car will be a few years from now once EV/Plug-in hybrid models have stabilized and gotten to be proven - the latter are proven already but not yet available in the small size and budget I need. I believe unless your need to buy a new car ie urgent this is the time to wait it out. By 2022 the picture will be quite different with regard to whats on offer.

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Originally Posted by cool_dube (Post 4652077)

Exactly. I completely agree on the pricing (grand i10 touching 8 Lakhs!). The question is, once the discounts start pouring in, is there value back on the table? Would that prompt a shift in purchase decisions? Or Like Narayan said, we are awaiting a generational shift in automobiles with hybrids and EVs so, its a 'no' irrespective of the price?

Waiting means Inventory pile up at manufacturer's end. They certainly would have enough Operations analytics to know that to liquidate all stocks they must stop production of BS4 powered vehicles NOW.

Would a 40% discount(hypothetical) on sticker price(already over inflated) justify:

a. Going in for obsolete tech
b. Going in for a vehicle sitting in the stock yard for a year
c. Going in for a vehicle knowing fully well they might need more modifications in the fuel system in the future?

Not for me at least.

I almost came this close to sell my Elantra and go for a Ignis manual Sigma petrol for my daughter did two test drives. But somehow my daughter wasn't inclined and I put it on the back burner. Looks like this is a volatile period and better to wait it out rather than buy in haste and regret in a weeks time.

Call me heartless, but I always wait for the moment when the dealer will be running behind me for my money. I bought a few cars in the past with some shocking discounts and I intend to take the same route in future too. Simply go to the dealership in the morning, prove that you are going to take her home with you same day; and then see how the meetings start from sales guy to sales GM and finally a sweet deal gets closed.

Make the hay when the sun shines, these are the same dealers who never leave a chance to rip the customer's wallet. Why even think about them or their profits etc?

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Originally Posted by sharninder (Post 4652070)

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Originally Posted by rrnsss (Post 4652062)

Sadly there is no car in the market that I desire even if given at half the price.
I am looking for a sub 20 Lakh station wagon/ MUV with Proven Crash worthiness, Airbags, Modern Automatic (not Maruti 4 speed) , Cruise Control, Fully flat folding rear seats, a powerful AC and a 100 Bhp + Engine.

These are 'almost exactly' my thoughts.

I'm not too impressed with the Seltos, and with Honda dropping anchor on the HR-V, I don't see anything exciting till compact SUVs from VW, Skoda and Citroen make their appearance.

I'm told that the Jeep Compass 1.4 DCT is likely to fall slightly below the 20L mark in the months to come, but it misses out on Cruise Control and Paddle Shifters! What a shame! :Frustrati

Voted for first option.

Govt will most likely announce an extension of maybe 6 months to allow auto companies additional cushion to dispose off their old stock and get newer BS6 engines out.
EV vehicles can only take off when charging station infrastructure become available all over the country or else our Electrical vehicles will remain stuck to the city we live in due to lack of charging stations. Or short jaunts of 350 kms one way.
How will the industry dispose off the batteries these EV use.

I have just renewed the fitness certificate for my 15 year old daily driver so have enough time to allow all the dust to settle with regard BS6 and take a call on the next purchase.

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Originally Posted by cool_dube (Post 4652077)

The government's tax structure has also added to our woes. For eg, for a compact SUV, the taxes are - GST at 28% and a Cess of 17% taking the total tax upto 45% of the value of the car!

I assume that even if the govt reduces the GST or the Cess on the 20th, the auto industry will not transfer the entire benefit to the end consumer.

Waiting to buy a car you desire for 6 months with a max 20% discount is not wise in my opinion. Cars are more of a luxury than a necessity. People who are using cars for daily livelihood are the ones who should wait for a probable Fire Sale before we move on to BS6.
Unfortunately for me there is no car which satiates me and my requirements. Only if Fiat had their after sales service sorted with an extended warranty period, I would have gone with an Abarth or Linea Tjet. These two are anyways on Fire Sale throughout the year lol:
Apart from these the other cars I desire are way out of my budget. May be a polo tsi but not too keen on it as of now. Shall wait for better cars if they do come to India. We deserve better than what we have got so far.

I think the issue is multi-faceted. Listing few on top of the mind.

1. Car prices are irrational. The increase has been more than warranted. Manufacturers got too greedy.
2. It’s transient times on both fronts. BS6 norms and impending arrivals of EV.
3. Frankly there isn’t anything exciting in the market.
4. Lot of brouhaha on economic slowdown hits buyer confidence. (As for me I’d rather have a 4% growth rate and a better quality of life. To me GDP growth has no meaning in itself).

Car manufacturers enjoyed their product profit all these years and even now it's not running in negative revenue loss. It's just their profit percentage has gone down. Also, now people get to know the actual VFM concept and expect a stable product for that money. Even now, post discounts Alto 800 touches 4 Lakhs onroad.