81% cars sold in Indian market in the Year 2019 were having a price tag of under ₹ 10 Lakhs!

We believe that a customer first decides the budget and then decides the segment/model of the car that he or she shall purchase. Hence a consumer having a budget of ₹10 Lakh may purchase either an i20 (Premium Hatch), Brezza (Compact SUV), Honda City (Executive Sedan), Kia Seltos (Mid SUV) or any other model/variant which shall fit in the budget. Gone are the days where consumers would first decide the segment and then the model – It is more of deciding the budget now and then the model is finalized irrespective of the segment basis the customer’s taste.

The Price Range Sales shall give a detailed insight on what price bands found highest number of customers. It shall also give us a glimpse on what amount the customer is ready to shell out to purchase a vehicle.

  • 81% cars sold in Indian market were having a price tag of under ₹ 10 Lakhs (Ex-showroom)
  • High indirect tax rate makes India a low value car market, as major chunk from buyer’s valet goes to Government(s)
  • Only 6% buyers could afford a car that cost more than ₹ 15 Lakhs (Ex-showroom)
  • This indicates low level of purchasing power, wealth growth and higher wealth concentration in hands of few

(The article is written by Rohan Rishi. You can connect with him at emailrohanrishi@gmail.com)

2 thoughts to “81% cars sold in Indian market in the Year 2019 were having a price tag of under ₹ 10 Lakhs!”

  1. i would rather look at it like this — more than affordability, more people prefer to spend only that much on their car, either they do not see a value proposition or contended … even the pre owned car market might be taking a junk of this buyers who wanted a bigger or more equipped car .

    1. Need to analyse the monthly income to car value ratio, to understand more.
      Av salary of a person wd be around 70000 pm and the 10 times of it wd be 7 L.
      The EMI and interest payments too wd increase for high cost cars.
      The EMI should only be not more than 20 – 25 % of the monthly income.
      More over the fuel and maintenance expenses also have to be reckoned.
      So the affordability of a high cost car is a question mark , though people would aspire to own a car
      The non availability of good hassle free roads infra also adds up yo the woes.

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