[tarunjain]

Originally Posted by bhalu

Hyundai Tucson 2L Diesel 2W and 4Wd are a good choice close to 30 lac mark

I wasn't too elaborate in my comment as it was a bit off-topic. By 4x4, what I meant was a proper off-roader. There are of course couple of AWD options in that range - XUV 700, Hyundai Tucson. But soft-roaders.

[Tuborog]

This is an interesting one, and I am always questioning the same. Do you get ~1.5x of Honda Amaze, while buying a City, or ~2.5x in Civic (now discontinued though)? Answer is not at all. But, is it no like comparing 100 Altos with one Rolls Royce?

My point is, there are 3 major factors involved, while choosing a car. Please note that these will keep changing with time:
1. Budget
I always feel 6-7 months of salary is what one should spend on a car, at max. The no of months might vary for everyone. On top of it, often neglected, is the maintenance costs like insurance, fuel, service and repairs etc.

2. Utility (performance or snob value or comfort)
What and how am I going to use this car? I personally prefer comfort and performance. Snob value has not much importance to me. It may change later though.

3. Interest/hobby
In my opinion, this trumps the most. If I can afford a super luxury car, but have absolutely no interest in them, I may be happy in any of the humble cars. I know few people who are earning 1 Cr+, but recently upgrade to Ciaz from 15 yr old Swift last year. I have also seen cases on other side of the spectrum, where people end up spending more on cars and being content with it.

To sum it up, it is a Linear Programming Problem and maxima or minima can be evaluated mathematically to arrive at a "best value car". We just need to figure out the individual's linear equations.

[automowheels]

Interesting thread, and one I myself have been exploring in my head for a while. At what point can one get peak value-for-money, or in other words a point from where you get diminishing returns?
Certainly, in my mind, this depends on body style, with SUVs usually costing more than sedans. With the limited amount of automotive knowledge I have, I certainly won't put a price range to answer this, but a range of vehicles vis-a-vis their current market prices. With sedans, it's hard to beat the Octy-Superb duo at their price points. If I had to choose just one, I would go with the new Octy. On the SUV front, the upcoming Tucson might very well take that VFM slot for me if launched at a price of 30-36L OTR, followed closely by the Kodiaq. Again, just like everyone else's, this is purely subjective opinion.

[nishsingh]

Originally Posted by V.Narayan

So I guess 100 car buyers will have 101 views on a topic like this.

Here's one of the 101 views on points of diminishing returns :

• Hatchback : Rs 10 lacs, (Baleno, i20)
• Sedan: Rs 20 lacs, (Honda City)
• SUV, MUV: Rs 30 lacs, (XUV700 and Innova)

[McLaren Rulez]

The high rate of diminishing returns applies to a lot of things, not just tech products.

Want to go out for a meal? Want to buy new clothes? Want to buy a car? You will find relatively cheap alternatives that do surprisingly well. Anything more than that is usually a want, not a need. For cars, an Alto is a surprisingly capable machine for its price - will probably hit it out of the park in terms of sheer value compared to everything else. The higher you go, the less bang you get for your extra buck.

[niruvrs9669]

Originally Posted by GTO

Great thread idea .
Hell, other than the style & 4x4, I consider the Innova Crysta to be a superior car to the Fortuner. The cannibalism was so much that Toyota discontinued the Innova 2.8L AT variant to differentiate the Fortuner.

Well said. Happy to read this thread right when I was feeling the itch to stretch for another luxury suv.

In real world 2.4 L Crysta feels more refined and balanced than a Fortuner at a lower price point. I think it’s a faux pass by Toyota .

[pjnayak64]

IMHO its 30L in Indian market. What prompts me to hit on this number is that vehicles under this price bracket have almost all the goodies and accessories one can expect. Even in 30L, one ends up paying about 60% plus, in taxes, insurance, RTO charges etc.. Beyond this point, most vehicles are either CKD or CBU. This substantially increases the percentage of taxes. Moreover you start paying a heavy premium for badging. Many 30L+ vehicles lack many of the features (basic and luxury) of sub 30L ones. Beyond this point it becomes a STATUS SYMBOL rather than a comfortable ride.

[sgmuser]

Many times GTO talked about it and the best time to implement his ideology is now! Going used car market route!

The time is ripe for even with a budget of 25 lakhs around, to look for a good German (MB/BMW) car which is less 5 years old and run less than 60k. There are many in the market due to various reasons (Covid is the predominant reason though). Spending few lakhs for the next 5 years for the up keep still worth as the snob value is impeccable when compared to buying a 30 lakhs Innova or 40 lakhs Fortuner or even 25 lakhs XUV/Harrier.

There are good Volvos/Audis/VWs as well to consider and let us not worry too much about the maintenance, because, even Grand i10 diesel needs 4k to 6k to maintain unless we are not vigil with these notorious ASCs. Germans are usually having double the service interval compared to the Koreans/Japs.

Mercedes C series, GLA 220Ds are remarkably reliable and easy to mend (non-ASCs can actually better jobs). In BMWs, X1 is a good start which is formidable in size compared GLAs and gives good fuel efficiency and we can find easily good ones around 25 to 30 lakhs which are around 5 years old.

If one has the guts/time, there are good ones even in the range of 15-20 lakhs but that may require some effort to find.

[josetom89]

Agree with the general sentiment. 20-30 lakhs is THE range as per the current market. For me "BHP" is the primary criteria to zero in on a purchase. No other cars south of 330i and jaguar XE breaks that 200 bhp barrier. (Fortuner and Gloster are more than 200 however are heavy SUVs). All the offerings in 20-60 lakh range offer you similar performance barring few luxury features. 20-30 lakh range offers you plenty of options including some great torquey diesels though almost all are SUVs / cross overs. A sedan means I would definitely stretch 3 lakhs or so for an Octavia.

[jithin23]

There's no one particular answer for this thread. The quote "Each to their Own" applies here. Interesting thread though.

In my perspective I think that this is a good spot for car shopping but on the flipside most of the models such as jnnova crysta and XUV500 were available between 15-20L OTR Bangalore in 2017-18 and paying 22L for a C- segment vehicle / 30L for an MPV or a D-segment vehicle curently does not make complete financial sense, unless the person uses the car a lot. Most of the cars in my locality and in my circles are garage Queens except mine.

The recent trend is used cars priced between 8-15L. Man this an unexplored arena by most of us but this does have its own quirks too such as waiting for the right car from an individual, dealer transparency, etc.

This way I get the best of Both worlds.

[84.monsoon]

I think the answer to this question depends on the most important utility sought.

• Comfort - 20 lakhs, as the Slavia/City and Creta/Harrier/Carens give you all the comfort depending on Sedan/SUV/MPV is the body shape you prefer.
• Features - 30 lakhs, as the XUV700 delivers almost all the gizmos and features you want in the top end variants.
• Safety - 30 lakhs, As the XUV700 is as safe as they come, with ADAS etc. (Still need some long term analysis, in general, of safety of ADAS systems on Indian Roads
• Space for big family- 30 lakhs, as the Innova and the Carnival give you all the space you want
• Snob Value - No limit, as this is relative to the socio-economic bracket you belong to and the need to (a) be accepted without eyebrows being raised and (b) to stand out once you are past the first stage.
• Enthusiast Life - Power, Performance, Handling, et al. Again no limits, as these are the tigers who once taste blood, want more and more of it

[blogslogger]

I have a slightly different take on the topic. If the car doesn't give a sense of content before the drive and smile on your face after a drive, that is the point of diminishing returns.

The smile can be due to various reasons. Safety of the occupants, prestige or in he words of Jeremy Clarkson, 'Speeeeeed and Powarrrrrr'

But I do think prices have got ridiculously high over the last two years due to factors beyond a common man's control.

Also, current trends play a major role. Current trends of bigger cars is naturally making cars more expensive without offering any substantial returns.

I personally believe cars in India peaked during 2016 and after that, manufacturers started nickel and diming consumers. After searching around for over an year to buy a reasonably priced car, I got myself a pre owned Jetta. I've test driven cars until 60,00,000 OTR price points but always got down feeling Jetta gives me most if not all the features. And it cost me just more than 10% of the price.

No amount of mathematical modelling can accommodate for the 'heart flutter' variable.

[OffRoadFun]

Its a subjective matter.
One thing is for sure, the bang for the buck for car in India is pretty low compared to what one can have in EU/US where traffic in cities is well managed and roads are wide open and safe in country side on highways!

But of course, enthusiasts will always look for pleasure from driving.
I don't know the price, but here is what I would think is a good sweet spot:

1. A 0-100 time of 8s or lesser for driving pleasure
2. Decent interiors and fit and finish (I would exclude Maruti from this!)
3. Size depending on needs ( family size, travel/camping/outdoor etc)
4. Modern features inside cabin, integrated hassle free infotainment

Note I am not putting brand/status here as that would take us into another territory which is even more subjective.

Based on that, 25-35L range would offer choices: Tiguan, Kodiaq, Jeep Compass, Taigun 1.5TSI, XUV, Innova, even Kia Seltos (come to my mind), Tucson, Skoda Superb, Octavia etc come to my mind (not an exhaustive list). Beyond that, returns are diminishing, bang for the buck is low, in my opinion.


Unless one takes highway trips regularly or goes to race-track, those 200HP+ cars are not of much use (inside city by corollary). In fact, sometimes they lead to frustration in city as their engine's full potential can rarely be realized unless increasing chance of accident. Snob value is a completely different ball game but I never believed or will believe a 300HP car is better to drive in city than say a 200HP car in a city like Bangalore (or for that any Indian metro), whatever the owners may believe! But again, it may be my bias!


My two cents again!

[B103]

In a related topic, I found this curious video claiming that Toyota gets to make only 40k for a 45 lacs Fortuner. Dealer earns close to a lac and Govt earns around 18 lacs ! Not sure if this video has factual information or a figment of fiction. If that is true, it is tantamount to debilitating the auto industry. Remember the story of the Golden goose. It is a pervasive mentality in the Indian business. We have been hearing all this while that car manufactures are not making much money by selling cars. Paradoxically, the spares and service seems to be the bread and butter for them.

On one hand, the industry is rosy and full of promises but we see many companies faltering and exiting. Over regulation, policy flipflops, high taxes etc. had been devitalizing the telecom and airline industries. Probably, auto industry also.

https://www.youtube.com/watch?v=d8Wxgn_d_-Q

[Samegoodkid]

Interesting thread.
I would evaluate by selecting a parameter(e.g size ,power figure etc) against which I can measure my returns. If you consider the car as a whole, it becomes a little subjective(rightly pointed out by others).

If I ignore all other aspects for a moment and just conder the power figures, I would say anything over 120-130 bhp would be my cut off mark. I believe on very rare occasions would I need "more" power.

For me, above 130 bhp is when the law of diminishing returns would kick in.