Entry-level car business is at the lowest level, know why the brakes on the sale of small vehicles

Hyundai Santro

Image Credit source: Hyundai

The share of smaller entry-level units like the Wagon R and i10 has come down to its lowest in seven years at around 17 per cent. Whereas in the financial year 2015, this figure was about 27 percent. In terms of total numbers, this decline has come down from about 7 lakh units to about five and a half lakh units in this period.

It is the dream of a common man to get a car once in his life. even though car Small (Hatchback Car) Why not to be. Companies also launch many models in the market keeping in mind their need. Due to their cheapness, they are bought a lot. It has been happening like this for years. But what if we say that people have stopped buying them. Would you believe this? Yes, this is true. In the last seven years, sales of entry-level cars have come down to the lowest level. But the question is how did this happen. So let’s know the reason for this. In fact, inflation (inflation) and there has been a tremendous decline in sales due to high car prices.

Now let us know how much the prices have increased. The average on-road price of an entry-level car has gone up by 42 per cent to around Rs 5.5 lakh. In the financial year 2017, the on-road price was around three lakh 39 thousand. In such a situation, the dream of those people who wanted to move from two-wheeler to four-wheeler got away.

Now let’s talk about the models. The share of smaller entry-level units like Alto, Wagon R and i10 has come down to its lowest in seven years at around 17 per cent. Whereas in the financial year 2015, this figure was about 27 percent. In terms of total numbers, this decline has come down from about 7 lakh units to about five and a half lakh units in this period. The contribution of first time car buyers has been only 46 to 47 percent.

Santro car will no longer be sold

Hyundai Motor discontinued the Santro earlier this month for some of the same reasons. Here, the possibility of recovery in the entry-level car market is being expressed less in the recent past. However, car makers and analysts say the recovery will be largely driven by economic growth, rising income and easing semiconductor shortages. At the same time, sales of entry-level cars may have come down, but premium cars are being bought fiercely.

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Car market volume grew to 48.5 per cent in FY22 on the back of premium cars. In the financial year 2019, it was 27.9 percent. According to the Society of Indian Automobile Manufacturers (SIAM), the contribution of premium compact cars also increased from 16.6 per cent to 20.5 per cent during this period. There is a boom in the sales of cars of companies like MG Motor and Toyota. The sales of electric cars being launched in the market are also increasing day by day. People are investing lump sum money on first time purchase because they already add all the profit and loss ahead. Buying bigger cars costs more money, but it also has many benefits.

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