The Indian Middle Class isn't buying cars like it used to

amitayu · 11th September 2024, 12:19

I think a large part of the problem is the gap between ex-showroom price and or-road price.
A study on the gap will give us a a better picture of how 'expensive' buying cars have become.

Earlier we had a lot of action in the 5-8 lakh price bracket. But nowadays most car maufacturers have left that segment to Maruti. Only Tata is still a considerable player at that price point, with Hyundai having some presence.

Much of the battle has now shifted to the 10 lakhs plkus market. But wheneven we do these comparisons we only look at ex-showroom price. A buyer has to pay considerable extra to finally get the car on-road.

For the middle-class, that is a critical factor.

glovins2004 · 12th September 2024, 14:20

Yesterday, I went to fill petrol for my wife’s Brio at a nearby petrol bunk, I’m a regular customer there for the past 10+ years. So, most of the dispensing staff knows me and our car. As usually one of the staff members approached and started to dispense, while he was filling, I noticed him gazing through the car and he said, “How long you drive the same car, isn’t time to change?”

Well, I just gave a gentle smile and moved on, but the truth is, it did prick a bit.

anandhsub · 12th September 2024, 18:49

Quote:

Originally Posted by John Jacob13128

For some perspective China has less than half the road fatalities with close to 5X the vehicular penetration.

India has about 2-2.5x the annual vehicle sales of China. Total vehicles on road would be even higher.

Cliff9091 · 12th September 2024, 21:29

Car prices have gotten way out of hand and are rising alarmingly whereas companies are still paying the same salaries like they did. Look at the compact SUV space, almost 20 lakhs for a couple of jacked up hatchbacks, no thank you. The XUV 3XO is the only true crossover in that segment but for what it offers I'd pass. One car in that segment I find priced alright is the Hyundai Venue.

I'm a college student, the first big purchase for anyone who got out of college would be a set of wheels. With the new car prices in the market now even some reliable used car prices have shot up. I was scouting for a 2nd Gen Swift diesel, came across absurd prices and the dealers say "new car is 12 lakhs, that is why this 8 year old car is 5 lakhs". Ridiculous.

I'm better off sticking to the metro and BMTC buses. I've got to appreciate the govt in that aspect, at least from my perspective in Bangalore.

John Jacob13128 · 13th September 2024, 17:40

Quote:

Originally Posted by anandhsub

India has about 2-2.5x the annual vehicle sales of China. Total vehicles on road would be even higher.

Nope. China sold 30 Million PV in 2023 compared to 4.1 Mil in India (That's a massive 7X)

Even at total motor vehicles on road China is approx 440 Mil, and India is probably north of 320 Mil (higher mix of 2W)

pritanshchandra · 14th September 2024, 07:42

Bought the 2013 3rd Gen Honda City AVN 2 months back. It was through a known contact, was owned by an ex judge. Just 60k on the ODO, mint condition. I paid 3L all in including insurance and transfer. I needed a car for office commute and weekend getaways in Gurgaon & my parents needed the Tiago back home. Since it has been only 10 months since I started my first job at a Big4, I was not looking to take any loans or anything. I am in love with this car day in and day out. People look back at their cars when they lock it, I look back stand and admire it for a good 5 minutes, everytime.

The Indian Middle Class isn't buying cars like it used to-20240824_150645.jpg

volkman10 · 26th February 2025, 18:06

Billion Indians have no spending money, middle class - The big squeeze: report

- The country's consuming class, effectively the potential market for start-ups or business owners, is only about as big as Mexico, 130-140 million people

-Another 300 million are "emerging" or "aspirant" consumers but they are reluctant spenders who have only just begun to open their purse strings, as click-of-a-button digital payments make it easy to transact.

- India's wealthy population is not really growing in numbers, even though those who are already rich are getting even wealthier.

-India's middle class - which has been a major engine for consumer demand - is being squeezed out, with wages pretty much staying flat.

- Report also points out that white-collar urban jobs are becoming harder to come by as artificial intelligence automates clerical, secretarial and other routine work

-India is also a consumption-based economy, thus the fall in consumption that can result from the displacement of its workforce is bound to have macroeconomic implications. If the worst-case projections materialise, this could have the potential to set the country's economic growth trajectory off course.

The Indian Middle Class isn't buying cars like it used to-screenshot-20250226-180351.jpg

Link:

11th September 2024, 12:19	#136
amitayu BHPian Join Date: Mar 2012 Location: Kolkata Posts: 433 Thanked: 546 Times	Re: The Indian Middle Class isn't buying cars like it used to I think a large part of the problem is the gap between ex-showroom price and or-road price. A study on the gap will give us a a better picture of how 'expensive' buying cars have become. Earlier we had a lot of action in the 5-8 lakh price bracket. But nowadays most car maufacturers have left that segment to Maruti. Only Tata is still a considerable player at that price point, with Hyundai having some presence. Much of the battle has now shifted to the 10 lakhs plkus market. But wheneven we do these comparisons we only look at ex-showroom price. A buyer has to pay considerable extra to finally get the car on-road. For the middle-class, that is a critical factor.
	(7) Thanks

12th September 2024, 14:20	#137
glovins2004 BHPian Join Date: Oct 2019 Location: Bangalore Posts: 89 Thanked: 417 Times View My Garage	Re: The Indian Middle Class isn't buying cars like it used to Yesterday, I went to fill petrol for my wife’s Brio at a nearby petrol bunk, I’m a regular customer there for the past 10+ years. So, most of the dispensing staff knows me and our car. As usually one of the staff members approached and started to dispense, while he was filling, I noticed him gazing through the car and he said, “How long you drive the same car, isn’t time to change?” Well, I just gave a gentle smile and moved on, but the truth is, it did prick a bit.
	(6) Thanks

12th September 2024, 21:29	#139
Cliff9091 BHPian Join Date: Jun 2021 Location: Bangalore Posts: 116 Thanked: 295 Times	Re: The Indian Middle Class isn't buying cars like it used to Car prices have gotten way out of hand and are rising alarmingly whereas companies are still paying the same salaries like they did. Look at the compact SUV space, almost 20 lakhs for a couple of jacked up hatchbacks, no thank you. The XUV 3XO is the only true crossover in that segment but for what it offers I'd pass. One car in that segment I find priced alright is the Hyundai Venue. I'm a college student, the first big purchase for anyone who got out of college would be a set of wheels. With the new car prices in the market now even some reliable used car prices have shot up. I was scouting for a 2nd Gen Swift diesel, came across absurd prices and the dealers say "new car is 12 lakhs, that is why this 8 year old car is 5 lakhs". Ridiculous. I'm better off sticking to the metro and BMTC buses. I've got to appreciate the govt in that aspect, at least from my perspective in Bangalore.
	(7) Thanks

14th September 2024, 07:42	#141
pritanshchandra BHPian Join Date: Sep 2020 Location: LKO/BLR/GGN Posts: 91 Thanked: 230 Times	Re: The Indian Middle Class isn't buying cars like it used to Bought the 2013 3rd Gen Honda City AVN 2 months back. It was through a known contact, was owned by an ex judge. Just 60k on the ODO, mint condition. I paid 3L all in including insurance and transfer. I needed a car for office commute and weekend getaways in Gurgaon & my parents needed the Tiago back home. Since it has been only 10 months since I started my first job at a Big4, I was not looking to take any loans or anything. I am in love with this car day in and day out. People look back at their cars when they lock it, I look back stand and admire it for a good 5 minutes, everytime. Last edited by pritanshchandra : 14th September 2024 at 07:48.
	(7) Thanks

26th February 2025, 18:06	#142
volkman10 Distinguished - BHPian Join Date: Dec 2010 Location: -- Posts: 25,849 Thanked: 79,266 Times View My Garage	Re: The Indian Middle Class isn't buying cars like it used to Billion Indians have no spending money, middle class - The big squeeze: report - The country's consuming class, effectively the potential market for start-ups or business owners, is only about as big as Mexico, 130-140 million people -Another 300 million are "emerging" or "aspirant" consumers but they are reluctant spenders who have only just begun to open their purse strings, as click-of-a-button digital payments make it easy to transact. - India's wealthy population is not really growing in numbers, even though those who are already rich are getting even wealthier. -India's middle class - which has been a major engine for consumer demand - is being squeezed out, with wages pretty much staying flat. - Report also points out that white-collar urban jobs are becoming harder to come by as artificial intelligence automates clerical, secretarial and other routine work -India is also a consumption-based economy, thus the fall in consumption that can result from the displacement of its workforce is bound to have macroeconomic implications. If the worst-case projections materialise, this could have the potential to set the country's economic growth trajectory off course. Link:
	(5) Thanks