With the exciting range of autos being offered in the Indian market, the question that is being increasingly asked is about the pricing. Are Indian cars overpriced? Ravi Shankar from Chennai said that his plan to upgrade to a new car from his current stead – a 2013 model Volkswagen Polo GT TSI – threw some weird challenges. “The Hyundai Alcazar with a starting price of INR 1,700,000 and Skoda Kushaq with a starting price of INR 1,700,000 lakh look overpriced. Considering the fact that localisation has gained since I bought my Polo, the car prices should go down rather than go up. My Polo, with an imported TSI engine and a DSG transmission, cost INR 930,000 lakh. The Polo GT TSI on offer today is priced at INR 1,174,000 approximately in Chennai,” said Ravi. He added, “Should the price not go down rather than go up?” Mahesh Murthy from Bangalore said that he has postponed his plan to upgrade from his 2012 Punto. He finds the current car prices exorbitant. 

A car dealer from Delhi expressed on the condition of not revealing his name that the interpretation or inference of a product being overpriced lies with the buyer. Cars today offer more creature comforts, safety and powertrain combinations, he said. This should justify their price, he added. Stating that a sub-four metre car costing close to or more than INR 1,500,000 is discomforting, Vikram Jagtap of Pune said that cars like these fit in a tax bracket that ensures a significant tax rebate. Asked if this was because of the regulations and features, he answered that the he is not certain if the addition of technologies and features like BS VI, airbags, ABS, ESP and EBD would lead to such a price escalation. Saikat from Kolkata averred cars like the Mahindra XUV300 and Tata Nexon offer among the best safety aspects if the preconception of buying a ‘big’ car at INR 1,500,000 is set aside. They offer a long list of safety features like seven airbags, ESP, ISOFIX seats, ABS, EBD, 5-Star GNCAP rating and more, he added. 
 

Is it features?
Rohan Srivastava from Kanpur informed that the long list of features in today’s new cars is their differentiator as well as a catalyst for price increase. They, to an extent, justify the price increase. The other factors include inflation, which has in turn led to a jump in raw material prices, he added. Drawing attention to the near 40 percent jump in steel prices, which has affected his business, Srivastava said that some Indian car segments are reasonably priced. Srivastava drives a Hyundai. Neelkanth Sawant, a marketing professional from Pune, who drives a Maruti, said that car prices have kept pace with inflation. What failed to keep up with the pace are salaries in most jobs. “It is therefore that those looking to upgrade their cars seven-to-ten years down the line are finding it difficult to choose a new set of wheels costing 1.5 to two times more,” he added. Of the opinion that an INR 10,00,000 priced car of yesteryear lacked features like airbags, ABS, EBD, touchscreen, longer warranty coverage, parking sensors, auto wipers and head lamps, sun roof, climate control and connected car tech, an auto enthusiast from Hyderabad said that factor in inflation, and it is not illogical to have the current version of the same model cost INR 1,700,000.  

Raveeraj from Bangalore averred manufacturers are pricing their autos as per the customer’s willingness to pay. The fact that most cars are well-equipped does not mean that they are overpriced, he added. Ajit Powar of Pune expressed cars in India tend to be overpriced than in many other markets of the world. They also tend to differ in quality, he quipped. Is it because laws concerning autos are perhaps not as strict as in the UK or the US? Powar could not provide a definitive answer. An industry observer stated that he has seen some companies practice a culture of using different materials in cars that they export. The grade of steel they use differs, the quality and thickness of paint they use differs and even the amount of insulation or features they offer is different, he said. This, he claimed, is done to address the stringent safety and other requirements of the export markets. In terms of emissions and safety, we lag behind the European and US markets, and yet the cars made in India are priced high. This has largely to do with the taxes and high cost of doing business, he explained. Ram Naresh of Hyderabad said that the TUV300 he bought in 2017 cost him INR 1,250,000 on road. On the top of it, he paid INR 250,000 as the loan interest. He spent around INR 50,000 on accessories. The total cost came to about INR 1,550,000. What he spent on diesel, service, spares, insurance etc. would amount to another INR 150,000 to INR two-lakh. Looking at upgrading to a new car, he is finding the prospect of spending INR 150,000 on a sub-four metre vehicle weird. 

Inflation, weak Indian rupee, taxes, policies or greed?
Ram Naresh’s search of the low-end versions of cars has made him conclude that they are overpriced. “The Harrier XE, for example, is quite bare bone,” he said. “I have decided to postpone my decision to buy a new vehicle. I am now looking for a used car instead,” he added. Blaming inflation, weakening Indian rupee, the greed of automakers to make huge profits and the knee jerk reaction of authorities, Rohit from Indore said that it is high time cars are looked upon as a necessity and taxed accordingly. Bala from Chennai averred that tax policies have led to a great extent for cars to be highly overpriced. Electric cars are also not being spared, he rued. Look at the prices of electric cars and it does not look like the government is encouraging them, he quipped. Dev Tahalwani, who operates a three-wheeler, said that he finds the price of the new Mahindra Treo Zor electric three-wheeler high. And, if I avail finance, the cost is going further up, he complained. Expressing surprise over the recent EY survey report about buyers being ready to pay a premium of up to 20 percent, an industry source mentioned that the price of electric cars on offer in India is definitely high. The operating costs of such vehicles, their range, their reliability and their usability in terms of infrastructure are values that are yet not clear. 
 

Checks and balances?
Of the opinion that law makers in US and Europe are far more aware and sensitive to the sentiments of buyers and the general public, an industry observer said that the situation in India has not matured as much. The level of checks and balances governing automakers in the US and Europe are simply not there, he added. Stating that inflation, depreciating Indian rupee, ever increasing taxes, availability of high tenure loans and stagnating incomes have already driven car prices to insane levels, Robin from Chennai mentioned that a good upgrade for a reasonable amount after four-to-five years is no longer in sight. Sanchit Chari from Bangalore said, “Taxes have remained the same for the last few years. When GST was rolled out, the rates were set to what the combination of pre-GST rates were (VAT, state taxes etc.). So, they are not the cause of price hikes. Their increase has been one-to-two percent, whereas the car prices have moved up by almost 30 to 50 percent during the same period.” “It needs to be investigated if the addition of safety and emission technologies as well as features would lead to an increase in prices to such a level,” he averred. Rajesh Tandel from Mumbai drew attention to the price escalation in some of the long running cars in India like the Toyota Innova. In 2005, the vehicle was launched at a starting price which was no more than INR seven lakh, he said. Today, he mentioned, the starting price of the same vehicle is no less than INR 1,600,000 lakh. An increase of INR eight-lakh for a product line that is not drastically different from that of 2005 is hard to grasp, he added. 

A Delhi-based industry source expressed that the level of taxes on an automobile (there’s GST and a compensation cess of 48 percent, the enormous registration tax that is a state subject and continues to rise time and again), regulatory requirements and the cost of doing business are responsible for the costs rising so much and so often in at least the last one year. The average buying capacity of an Indian buyer has not risen in line, he informed. Explaining that INR 10,00,000 (roughly USD 13,000) is more or less the same amount of money incurred to develop a modern car – a compact SUV or a typical sedan – in comparison to other markets the world over, the source said that it is the tax component that needs to be looked at. Of the opinion that taxes would amount to a good portion of the prices paid to buy cars, Rohit remarked, “The increase in car prices is mainly due to base increases by manufacturers. Taxes are a percentage of base price and increase as the base price increases.” “If one wants to compare prices of cars with those that are also found in the US, he or she could compare the ex-showroom price there and the ex-showroom price here,” he explained. Doing the same some years ago, Rohit concluded that the base price of a car in India is a bit higher than in the US. This, despite the higher labour and regulatory cost in that country. 

State Bank of India (SBI) has entered into a strategic partnership with Uber to offer low-cost, tailored financing solutions as well as hassle-free loan disbursement to Uber’s fleet partners.

Both new and current Uber fleet partners will benefit from the partnership, which will enable them to easily grow their businesses and support the continued expansion of the ride-hailing sector in India. Easy loan disbursement will be made possible by the integration, assisting fleets in maintaining peak performance. The partnership guarantees that fleet partners can effectively manage their money and grow their businesses more quickly by utilising SBI's vast financial services network and Uber's technologies.

Vinay M Tonse, MD (Retail Business & Operations), SBI, said, “At SBI, we are committed to offering innovative financial products that support businesses across India. Our partnership with Uber highlights our focus on providing tailored solutions to a diverse set of customers. By offering affordable financing solutions to Uber fleet partners, we are helping to fuel the growth of the ridesharing sector while also ensuring that fleet owners have access to the capital they need to succeed.”

Prabhjeet Singh, President, Uber India & South Asia, said, “This partnership reinforces Uber’s commitment to its fleet partners and aligns with our vision of fostering growth in India’s ride sharing ecosystem. By providing affordable loans through SBI’s customised offerings, we aim to create an enabling environment that provides fleet partners with the tools they need to scale effectively and contribute to the overall development of the industry.”

Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has attained a new wholesales milestone for its Innoa HyCross SUV.

Launched in November 2022, the Innova HyCross has crossed 100,000 unit sales milestone in India. The Innova HyCross is powered by the 5^th Generation self-charging strong hybrid electric system and comes with a 2.0-litre 4-cylinder petrol engine and an e-drive sequential shift delivering 137 kW (186 PS) of power.

The hybrid system the company claims enables the Innova HyCross to operate 60 percent of the time in electric (EV) mode. The 2.0-litre petrol engine paired with a direct shift CVT in select variants, delivers 129 kW (174 PS) of power.

Sabari Manohar, Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We are thrilled to share that the Innova HyCross has achieved milestone of 100,000 units. Heartfelt thanks to our customers for their trust and support as we continue to drive unparalleled mobility experiences. The hybrid technology option in the Innova HyCross continues to impress customers with its exceptional performance and remarkable mileage. Beyond efficiency, the HyCross strikes an ideal balance of space and luxury, making it a practical choice tailored to a family’s diverse needs. Its superior handling, unparalleled comfort, and top-notch safety features further amplify its appeal. Combined with Toyota’s trusted service standards, the Innova HyCross delivers a holistic ownership experience that resonates deeply with its growing base of satisfied customers.”

AstaGuru will showcase some of the world’s most coveted vintage and classic cars at its upcoming ‘Classics of Motoring’ auction, which will take place from 20 to 22 November 2024.

The auction will offer an exclusive collection of rare and meticulously curated vintage cars, providing a unique opportunity for collectors and automotive enthusiasts to acquire iconic pieces of automotive history.

The auction will feature an impressive lineup of vehicles, including a 1934 Rolls-Royce 20/25 Limousine, a 1946 Singer Nine Roadster, a 1946 Bentley Mark VI, a 1947 Lincoln Continental V12 Convertible and a 1948 Jaguar Mark IV, among others. These stunning machines, each a testament to the engineering marvels of their era, promise to transport bidders back in time, celebrating the golden age of motoring.

A Growing Market in India

AstaGuru’s Vintage and Classic Car Specialist, Muzammil Kazi, shared his insights on the evolution of the vintage car market in India. “We did our first auction in 2018, and it was a surprising success,” Kazi noted. “At the time, these cars weren’t available online or marketed in the way they are now. You’d have to go to a dealer or connect with a seller directly, which made it hard to find these rare cars. But our first auction was a hit, with all lots selling successfully.”

The vintage car market in India, according to Kazi, is far from saturated. “The market is 100 percent growing. These cars were imported to India in limited quantities, and you wouldn’t find brands like Ford or General Motors here in the same way as abroad. Cars like the Fiat, Ambassador, or old Maruti SS80 were more common, but the rare vintage gems we are showcasing today are difficult to find.”

Kazi also emphasised that the scarcity of such cars means the market still has significant potential for growth. “The cars we have on display today are curated from various collectors across India, and it’s very rare to see them come together in one auction,” he explained.

Safeguarding Online Bidders

AstaGuru’s online auction platform also ensures that bidders are fully protected throughout the process. “We have a strong set of terms and conditions for the cars we sell,” Kazi explained. “We only auction cars with up-to-date paperwork and in proper running condition. Once a car is sold, we ensure the buyer receives it only after the seller submits a No Objection Certificate (NOC), making the transaction smooth and secure.”

Record-Breaking Bids

The auction has seen some impressive bids in the past. Kazi highlighted one of the highest bids to date: a Mercedes-Benz 111 230S, which was estimated at INR 2.1 million but eventually sold for INR 6.8 million. Another standout was a Rolls-Royce, which had an estimated value of INR 7-8 million but sold for a remarkable INR 18 million.

A Rare Opportunity for Collectors

For classic car enthusiasts and connoisseurs, the ‘Classics of Motoring’ auction represents an unmissable opportunity to acquire some of the rarest and most beautifully restored vehicles in the world. With its rich history and pedigree, each car in the auction is a testament to the artistry and engineering excellence that defined its era. Whether a seasoned collector or a newcomer to the world of vintage automobiles, this event promises a truly memorable experience for all involved.

As the vintage car market continues to grow in India, AstaGuru is setting the stage for an exciting future for collectors and car lovers alike. The ‘Classics of Motoring’ auction is expected to draw attention from around the world, offering a rare chance to own a piece of automotive history.

Tata Motors-owned British luxury car brand Jaguar has unveiled its new brand identity, which it says recaptures an ethos to Copy Nothing that traces its roots back to the words of its founder, Sir William Lyons. 

The new identify is based on Exuberant Modernism, a creative philosophy, which the company says underpins all aspects of the new Jaguar brand world. 

Professor Gerry McGovern OBE, Chief Creative Officer, Jaguar, said, “Jaguar has its roots in originality. Sir William Lyons, our founder, believed that ‘A Jaguar should be a copy of nothing’. Our vision for Jaguar today is informed by this philosophy.  New Jaguar is a brand built around Exuberant Modernism. It is imaginative, bold and artistic at every touchpoint. It is unique and fearless. This is a reimagining that recaptures the essence of Jaguar, returning it to the values that once made it so loved, but making it relevant for a contemporary audience. We are creating Jaguar for the future, restoring its status as a brand that enriches the lives of our clients and the Jaguar community.”

The four symbols of change – Device Mark, Strikethrough, Exuberant Colours and Makers Marks - each representing the future design philosophy for the luxury carmaker.

Device Mark celebrates modernism through the geometric form, symmetry and simplicity.

Strikethrough sees the linear graphic generate a unique presence and an immediately recognisable visual for Jaguar.

The Exuberant use of colours marks a cornerstone of Jaguar’s new brand identity.

Makers Mark consists of the newly reimagined Jaguar ‘leaper’, which the luxury brand said is part of its mark of provenance. 

On 2 December 2024, Jaguar will present its first global public installation under its new brand philosophy at the Miami Art Week.

Rawdon Glover, Managing Director, Jaguar, said, “To bring back such a globally renowned brand we had to be fearless. Jaguar was always at its best when challenging convention. That ethos is seen in our new brand identity today and will be further revealed over the coming months. This is a complete reset. Jaguar is transformed to reclaim its originality and inspire a new generation. I am excited for the world to finally see Jaguar.”