I would like introduce another angle to it. govt. is ultimate athority and controlling power in this country. how they have been playing with us let's see how they contol the way we spend our money.
Public transport: if the public transport is good in any country people dont want to buy cars (ok may be one). for example in japan maximum people use metro trains for commuting. similarly in new york. they have cars but only which suits their taste.another reason no parking space.
now in India govt. gets its large chunk of revenue (Excise duty, road tax etc.)from selling cars and more on petrol , insurance (the govt. takes a big cut from the insurance companies and all the large cos. are PSUs. don't forget the money they make from the manufacturers( very subjective so i won't go there)
Now the question is why discouraging people from buying when it is so profitable.
Finacial Institutions: they are one of the main culprits here i believe 90%
of the buyers get their cars financed and very happy about it. first thing any addition to cost will add on the finance cost which means your car is more expensive. secondly they entice you first to get a loan(cradit card, home loans, personal loans) it is ok if you understand the finances well but most of us dont. the logic is clear.
why you want to spend your hard earned money on a bad investment( cars, electronics, prices gets slashed from the day one)
it was going too easy for us to get a car so this happens.now what it does that it gives you more purchasing power at the onset but it actually makes you an EMI slave.
Traditional in india people used to invest in gold and land. those were long term investments. people almost never touched it till the time there was any emergency.
see in that scenarion there is no role of any bank.you work earn save and buy.
now what banks want they want us liquidate our investment and put the money on risk for small time gains(SIPs, shares, mutual Funds and LIC Policies) so the money is out in the market and working for them and govt.i am sure so many people must be having dmat accounts here.
First you get used to it and then they will change their prices or terms.See what happened to Home Loans. home loans were so low 5 years back that encouraged people to buy homes. not one but many it was good investment because prices were going only up.Govt. was always aware of that they allowed us till the time they wanted but suddenly price went up so high because people had easy money to buy more than one house.(specifically in gurgaon and delhi) so they raised the home loan prices drastically. now the genuine buyer is gone from the market. only traders are left.
reason they dont want us to invest us in long term because the liquadity goes .
people always under price their investment to save money on registration and stamp duty so less profit for govt.
that is why now they have circle rates for registration.
Last reason is
Infrastructure: they dont have the infrastruction to take care of so many cars and they don't want to touch their revenue earned on development but they want the money from us. what ever happens whether it is pollution or traffic they put the cost on people. for example when CNG was introduced in India. first thing they did was told all the transporters and poor auto wallas to convert and stand in long lines for refilling. they made money there also.
but if we take the example of china where they have designated the days when you can drive your even or odd no. cars.
so less traffic and less polution.
there buses are so big and comfortable that nobody wants to drive.(buses with bogey)so less no. of cars. where as in india we have RTV which are adding more traffic and more danger on the road as their carrying people like animals.
in the west they specific car pool lanes to encourage peple. so again less pollution and less traffic.
Bhavnao mein beh gaya yaar jyada hi likh diya. sorry for such a long post.