Car prices in 2013

If we look at the trend of car prices in India, we can see that per capita prices for cars have fallen significantly. E.g. Average salary in 1980s of a government employee would be about one-seventh of what it is today, but price of a Maruti 800 or Maruti Alto, its present day version, has increased from Rs. 2 Lac in 1980s to Rs. 3 Lac in 2013. Thus increasing salaries and less than proportionate increase in car prices has made cars more affordable to average middle class family. This is the long term trend.

But in short term, car prices in India are impacted by a lot of things. Some of the these include the prices of raw materials which is dependent on base commodity prices – most importantly steel, aluminium, price of moulded plastic – plastic is the maximum used material in a car – and factory costs, salaries, research and development costs, and regulatory costs associated with meeting environment safety standards.

As per present day status, cost of most raw materials is mostly under control and there is no prediction of any steep hike in steel or aluminium prices. But over a longer term, the prices of all materials have increased many folds, but car prices have risen only marginally. Car makers in India have been able to pass on huge amounts of cost savings to end consumers. Car makers have made savings on greater supply chain efficiency measures, utilizing Japanese techniques of factory productivity improvements like Kaizen etc, and by replacing expensive materials with more affordable or economic materials.

Car price is the often the single most important factor that decides what car a person would buy. Strong competition has ensured that consumer gets choice of atleast two or three models at all price points.

Now people can get an idea about the price of new or used also through online portals. Such portals offer a great platform to compare car prices based on features and specifications. Portals help person wanting to buy car to know the latest price of the cars he is considering. It is always more beneficial to browse for car prices in a website that is updated more frequently, has more number of followers and people commenting on its discussion forums. Such sites will provide good information in pricing details. So we suggest that car buyers should act wisely and choose the car that comes within your budget.