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 firstname.lastname@example.org)