News
BHPian 84.monsoon recently shared this with other enthusiasts.
Having watched the exponential way in which the prices of the German luxury offerings are rising over the years, I thought it would be interesting to compare the price premium of the luxury 7 seater SUV from BMW - which is a good sample of the price trajectory of the German marquees - and compare it with the top spec Innova. We could have also compared it with the Fortuner, which would show a similarly shaped graph:
You can see how the price of the German SUV is increasing disproportionately over the best alternative available in the mass market segment.
I think we will find a similar trend if we compare the price movement in other segments - when we compare the German marquee offerings versus the popular market offerings from the Germans or even the local companies.
Moral of the story - the Germans are becoming more and more difficult to afford for the initial buyer segment they were targeted at, and showing the characteristics of a luxury good, where demand is increasingly inelastic to the price. So if you want to own one of these, it is better to get in earlier and own it over a longer period of time. Fortunately, reliability of BMWs etc. has been improving, which makes it easier to hold on to these cars much longer then before.
Check out BHPian comments for more insights and information.