Why are India's Car Sales Dropping? | Vantage with Palki Sharma
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- Опубликовано: 17 сен 2024
- Why are India's Car Sales Dropping? | Vantage with Palki Sharma
India's car sales dropped for the first time in more than two years in the month of July. Car dealers have complained that manufacturers are flooding them with excess stock in a bid to capture a larger market share. What explains the loss of momentum in car sales? Palki Sharma tells you.
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Automobile | Car | Market | Sales | Firstpost | World News | News Live | Vantage | Palki Sharma | News
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Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.
The show is anchored by Palki Sharma, Managing Editor, Firstpost.
By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories - making Vantage a destination for thought-provoking ideas.
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Govt has destroyed the car market with its taxation. Govt is earning more than the car maker
True
All products there system
I intend to travel 12 hours to my hometown next election to vote against this government!
@@rahuldeshmukh5758 Glad that u have to travel 12 hrs or else during Congress gov u had to travel 24hrs😂
This government will destroy everything . They looted the people on high taxes on fuel and other products 😢
People are probably on saving mode due to high taxes, no job security and high cost of living.
Yes you are right
Want to buy a car but don't want to spend on reoccurring insurance and services and damages per year
Well said
Exactly. in India you have to pay direct and indirect tax. Taxes are too high.
Paying taxes on Income
Paying taxes on Investments
Paying taxes on Long Term capital Gain
Paying taxes on Short Term Capital Gain
Paying taxes for Spending, eating out, Buying things.
high taxes? Taxes are the same from post GST, and even previous regimes had more taxes compared to now....But other points does make sense
@@beastislive7174 petrol price, toll tax, indirect Tax while purchasing a car(environment tax, pollution, municipal parking) etc.
Inflation plays a big role as well.
Main reason is rapid increasing of vehicle prices every year
There is hardly any car available below 5 lakhs nowadays
har saal 50-60k toh ese bdha rahe hain ki bc gaadi nahi sona hi
@@AkhandBharat-mj7wg sahi kahaan apne
@@MonkeyLord-h6x Alto bhi 5 se upar chali gayi hai. Bas shayad Nano reh gayi hai ab to.
@@AkhandBharat-mj7wg Safety and features . After sale services bhi kuch khass nahi hai aur price esse badh rahe pata nahi kitni luxury provide kar rahe hai car me.
Taxation in India kills Automobile industry.. 48% tax is a killer .. Secondly no space on roads to drive
Its not 48%
28% gst + 22% cess + 20% road tax + gst on insurance for a car priced at 30L
Fuel prices and taxes in it, and Road tolls ... we all know
@@asraotuni for cars above 4mtrs it’s 48% tax GST is 28% & cess 20%
Really? No space on road.india has built large no of roads in last 5 years
@@nickelvikky9707 more than 4m and more than 1.5l petrol engine and 2l diesel engine.
@@sandeepkumarmajhi9735 Where? Who?
In india the government is rich not the people 😅
so in the western nations 🤣
Hey we have temple and stupid gotra stories 😊
Absolutely
Brilliant India consumers finally realised the definition of Liability and asset.
Nice... 😅
People are going for secondhand vehicles buddy
Go and check secondhand vehicles sales it's day by day increasing
In 4 to 5 lacs budget people are getting good cars....
Not alto lxi 😂😂🤣🤣🤣🤣🤣
@@RAJ-km8gw Are bhai chup betho, chilla chilla sabko scheme mat bata 🤫
I just got a quote for XUV700. The ex showroom price of 19,99,900/- includes 1,89,000/- CGST + 1,89,000/- SGST + 2,70,000/- CESS at 20%. Road tax is a different story all together
road tax is a joke...terrible condition during rains...BTW yeh CESS kya hota hai.
@@ashishdevnanisynonym of tax ..meaning we have to pay it..😂😂
You only get seats and steering in entry level XUV 700 for 19.99
@@ashishdevnani CESS Tax is the one that we have to play according to the vehicle length, Bigger the car, Bigger the CESS Tax
Add to it Rto tax another 2 lacs approx
Insurance 70 k
30k miscellaneous
So 3 lacs added to ex showroom price.
So a total of 9.30 lacs tax on a 23 lac car.
Compound tax. Road tax, central tax, state tax, fuel tax, service tax, income tax. Better go by uber or metro. Only govt benefit from petrol diesel vehicles.
Paise kamao bhai car toh necessary hai
@@Farmer4411nehi sudhroge😂
@@Rafiqansari-w3d nahi bhai mein toh fortuner lene ki soch Raha hun! Zameen bech dunga 50 lakh ki 2 bigha bahut h mere pe
@@Farmer4411 WTF. Thabks ror supporting economy
The people who bought conventional cars a fews years ago won't be shifting to EVs till atleast next half century.😅
😂😂😂
I would ride a cycle instead of using EVs.
10 year and 15 year car rule is also hurting people
Good point
That rule only exists to squeeze more money from people. Gov. Expects a common for whom a car is an achievement and luxury to dump a good working car in 15 yrs and buy a new one again for no reason? How does this make sense? Screw the rule, I will drive my car as long as it runs and others should do the same. We shouldn't comply with every nonsense put forth by gov.
@@MonkeyLord-h6x my honda city 2008 is far better than current sedans in market. Best in class engine, no maintenance. very happy from my 16 years old car. it will run next 10 very smoothly.
Thanks to Japanese technology.
That 10/15 year old rule only in DELHI NCR
That rule exists because of huge tax income to government. Running older cars is more eco friendly in terms of limited resources but govt. wants more sales and taxes
2 Samosa, 1 Tea and a Water Bottle costed me 490 Rs at Mumbai Airport.
Flight Ticket From Mumbai to Kolkata- 9230 Rs.
Cab drivers Took 1500 Rs.
Total 11220 Rs For Reaching Home (One time).
Avg. Person Earns Salary Per month in Kolkata is 17000.
And many of those People Among 100 Crore population whose Family depends on their Earnings !!
Seriously Janata Khatre mai hai !!
You're one of the middle income class like me who are fk by this looter party.
@@STgauss3268 Which party BJP or TMC 😂
A kind of loot is going on in our country. Government is least bothered
@@jaihind7886 who else run the Financial Ministry of our country?
Cab driver 1500 rs 😅😅😅😅😅how much kms ???
Reason 1 : Govt's super high taxes
Reason 2 : Govt's excessive emission control without subsidy
Reason 3 : Low disposable income due to higher taxes
Reason 4 : Overestimation of sales by car manufacturers
In short, Due to Tax terrorism.
Govt Killing Auto industry, Gst 28% cess 15-22%. Hybrid No Tax Relief, I want to buy Hybrid Honda City & wait till Tax benefit. Tax like UK Road like Pakistan. 7.5 lac inventory, Rs 80k cr unsold car. Govt Earn more Than manufacturers👍
In UP, Yogi/BJP government is giving 100% off on RTO registration for hybrid cars.
Just get 4th hand maruti 800 bro.
@@animeshsharma3363Now Nitin Gadkari ji Saying No Tax Benefit for ev
The only reason is Govt's Greed.
1- Tax on income, most people who buy cars comes in 20-30% tax slab.
2- Again tax on car upto 48%
3- Very high RTO Charges.
4- Again nearly 100% tax on petrol and diesel.
5- Toll Taxes
and cherry on top is pathetic infrastructure.
And dont forget after 15 years your car worth of 15-20 lakhs will become zero due to mandatory scrap policy so you will get no resale after 6-7 years if you try to sell and upgrade. So now buying a new car is a huge liability that is why people looking for cheaper. Used cars
Pathetic Roads, High Fuel tax, High tax on vehicle purchase - Worst traffic : Sufficient reason for not to buy a car.
The government is killing the common man in the name of Tax. Not only cars but everything has become costly now. The cost of living has gone up like hell. People say india is growing fast, but as a common man i dont see anything growing..we still get those bad roads, indisciplined traffic, same old chaos on the roads, same old overcrowded buses and trains where we cant even stand properly, the list goes on and on...the only thing i see growing is the population and nothing else. Im not an ecomics expert or so im just talking as a common middle class person, we have to pay more for each and evrything from medicines to groceries the prices are doubled but the quantity we get are half year on year.
That is why we are paying taxes like England to get the services like Somalia.
Government has hand in glove with car manufacturers.
Car manufacturers have increased the prices by minimum 30% to 35% after COVID without any valid reason.
Please see the profits recorded by Maruti Suzuki and other manufacturers in last quarter.
You will see phenomenal rise in the profits.
BS6 is the reason for exorbitant price increase post covid
The reason was chip shortage..
But when the shortage reduced they did not bring the prices down
I showed the dealer this report, they said the car price increased because cost of getting it here higher. Inventory may be piled up, but no one want to deliver it here.😅
Jobs are dropping hence sales are also down
LOGIC AT ITS PEAK FR
@@beastislive7174 Don’t raise your Voice improve your argument.
Tax terrorism
Excessive Taxation, Overpriced Cars, Fleecing at Tolls and Parkings and every avenue possible and Sub-Saharan Infra has created this issue.
Increasing layoffs, high cost of living is prompting many people to cut down on unnecessary expenses and trying to save as much as possible for the future and hence the decreasing demand for cars. Also cars are not necessary item as many families can survive with two wheelers itself and with increasing number of online cab aps, it's not that compulsory to buy a car right now especially in today's economic crisis as private sector jobs are very vulnerable to layoffs.
@eskutts, "two-wheelers" are also vehicles like cars. Cars can be necessary, based on weekly range of travel & its frequency, or if one providing ride to others. People who mostly travel within locality may manage well with bikes-scooties. Drop in car sales is due to recent economic slow-down, high fuel price, and also on other important factors like only 10 to 15 years span for scrappage & insufficient development in alternative vehicles (EVs) & lack of sufficient options in market (now trend is mostly for SUVs, compact-SUVs that could be costlier compared to small-Hatch-backs or Hatch-backs or small-Sedans).
Yes, I said the same thing, u just added few extra points which I missed.
@@priyankarpanja4676 Its Just RUclipsrs Propoganda, every year during July-Aug Sales are lower, There is no drop in Sales its just the Deliveries happens lower in July/August as people tend/opt to wait in Monsoons for not using new Car😊 Just see Sales in Oct -Dec when both Weather/Festive is Great, Also Discount are Gimmick (Exchange/Loyalty Bonus) to lure people to visit Showrooms then you will get to know the waiting period 😂
I asked a dealer from a reputable brand regarding it.. and the sad reality is that now the car prices are really exorbitant.. there was a time where you can get Swift for 6 lakhs.. Where now it is close to 9 lakhs..
That time with no safety u get it in 6 lacs..
But now there are lots of safety features added brother....
6 airbags abs ebd lots of safety features and Emission norms also....
With an inferior engine
Even dealers holding cars in demand to sell them on higher prices … also due to slow down demand is slow
Also, How many cars will people buy? The absence of good public transport is also a root cause of increase in the car consumption.
You need courage to tell the reality of India. Price increase, inflation, excess tax to middle class, unemployment and many things. But what can be done if someone's remote is in other hand.
Unemployed don't buy cars
@@marcos-1210 ever heard about taxi driver?
sahi baat he😂
mere khayal se ye ek paid video pre diwali sale offer aap video dekho or paise bacahao kyuki bahut gaadiya stock me he diwali pe sasti wali khareed lena company ka stock bhi clear hoga or profit bhi 😂😂😂
Which contributes to lower sales@@marcos-1210
The middle class pays taxes everywhere. No relief. First income tax, then cgst, agst, road tax, tcs etc. That's why people are not buying cars.
Unemployment, high interest rates, high taxes on cars, extensive hike in car price etc. These are the real reason for low sales
RTO charges too high specially in Karnataka. One nation One tax is just a slogan
Let bimaru states pay GST and income tax faithfully first, then we can talk about one nation one tax......
Cars should not be promoted as it will be choas in cities and everywhere if everyone will have personal car also the pollution will be there...cities are over crowded with cars I hate it
What you posted is a real dangerous problem. Public transport should improve both qualitatively and quantitative. Only then high income group people will start using them. Nowadays even middle income group people also are shifting to their personal cars.
@@sujok-acupuncture9246 yes that's the problem I advocate for good public transport
What is the govt doing to improve public transport? Most public transport are running on loss cause of poor state govt policies and freebies
@@MegaPrams yes that's sad
@@MegaPrams how private travels make profits and not the government transport. Unprofessional management. Net result= chaos on roads
As a customer I want to buy a car but
1. Car cost gone up in last few years
2. So much tax. Almost 2 to 3 lakhs after ex-showroom price.
3. Confusion about fuel choice whether to go for petrol, CNG or EV.
4. Too much fuel cost. Monthly Fuel cost is more than EMI.
5. Too much traffic in metro cities like Pune. Zero improvement 😊
If you some up above factors whose fault is it? Is it election? Is it climate? No its our govt and their policy to faaq middle class. And I voted for them now regretting 😊
Indian roads are already overburdened, New public transport vehicles should be getting a subsidies to improve traffic issues
Scrapping policy, price increase
Another important reason is the perilous state of traffic. People hesitate to drive in frustrating traffic.
We need more robust public transport rather than inflating car demands by creating infrastructure mostly suitable to car owners.
We need politicians to use public transport and set an example to the common manj
The answer is - very high prices of the cars that are unjustified for the quality and features obtained. In an inflated market - consumers would like to hold on to their current cars rather than get new ones.
1. Increased taxes
2. Increasing market size of used cars
3. With October approaching, people are waiting for Dhanteras/Diwali for purchasing new vehicles.
one of big reason I found difficult to consider a new vehicle is its reliability and quality of product and after sale service and support.
My present phone was brought for 16k on 2020.
My present two wheeler from suzuki was brought on 2021 for 95k.
my phone is still working in very good condition.
But my scooter which clocked 38k after undergoing all necessary repairs and maintenance at an authorised service centre at regular intervals is facing issues like
engine parts damaged need repair and replacement.
clutch parts damaged need repair and replacement.
meter is damaged need replacement.
certain others parts also need replacement.
and i have already replaced two turning light units and tail light unit under warranty.
and if things are not covered under extended warranty then this service all alone at this point I will be having a bill of 20k.
I wonder why my phone survived better than my scooter even though I use my phone much more than my scooter.
And family and friends My new scooter was Suzuki Access 125 2021 bs6 model.
and their is another story going on with royal Enfield too
I am tired of all these poor quality products unreliable without a warranty card.
People also have become aware of govt taxes.. And unemployment is also a problem
Yes Palki, I am planning to visit all the dealership in the city tomorrow with your report. Let's see the outcome 😂❤
He won't give a shit, max 50k discount..
The dealers are telling me to go to your office and ask for more discount 😄
I don’t know why she not coming to main point, Indian automobile downfall has begun, after all nearly half of car price goes to government as a different kinds of Taxes.
Scrapped vehicle owners should be compensated by govt with 100 pct gst and cess waiver and road tax waiver. NCR owners have suffered a lot.
They should think of decreasing price and giving more luxury features just like in other foreign countries
Ev does not make sense due to prices and the ice cars is also down due to high taxes, making cars expensive
Everything in India is dropping these days😂😂
Except the GDP growth 📈📈🔥🔥
Except GDP growth and people’s wise savings ❤❤
shut up wumao
Except retail tax
Except rape cases
Karnataka has the highest tax in the world paying almost 25% tax
High tax. Govt making more than manufacturer. 10 lac car after tax costs approx 15+ lac. Approx 43%tax
That too Without any investment and risk.
People are fed up with tax everywhere but Finance minister want to tax more 😢😢😢
Indian govt should make zero tax policy on cars with no cost emi. Registration & road tax zero
Wait for 2027 BS7 will be implemented starting price wud be 10 lacs
@@Soldierboy6486 basically INDIAN version of EURO 7 pollution norms and whenever norms are upgraded engines have to be upgraded which increses their cost further that is why many experts already said that cost of cars wud be increase by 1-1.5 laks
EURO 7 going to be implemented in 2025 while BS 7 going to be implemented by 2027
I reckon it is like this globally. People are realising to do better investments.You should see the car sales in Australia. Prices slashed by 20%. Heaps of Tesla cars in the dockyard which are now been selling at base price 50k AUD(27-28lacs INR) earlier they were 70kAUD(35-37lac INR)
Note the real reasons. Parking problems, Traffic problems, Mechanic Problems, potholes roads problem & Toll tax problems, above all Tax of 70% by central GOVT. is the reason behind car sales drop. Better to take OLA auto rikshaw for Rs 150 or 250.
rupee suffers biggest drop in 2 months, biggest trade deficit, foreign company exodus and india's car sales dropping is just an icing on the cake
Only two sentences to describe this entire situation.
1. Tax Terrorism
2. Worst Finance Minister.
High taxes on cars
The power of common man 💪 we've been taxed too much!
people paying high TAX and no money to buy anything😅😅😅
If the manufacturers are worried about car sales, then drop the price to half of it.
As always to the point ... thank you !
The main reason is confusion created by Govt: At one moment, he mentions 100% ethanol, then shifts to EVs, and at another point, discusses hydrogen cars. For a middle-class Indian family, purchasing a car is a significant long-term commitment-one that shouldn’t be jeopardized by such unpredictable policies.
I like the last line," show them this report"
Consumers should benefit from this sales bottleneck...also roads in our cities have not been able to keep pace with the burgeoning number of new vehicles
Better buy a used car. Buying new one means we pay 50% of the price as tax.
Makes sense. I have done as such
People selling used cars are smoking something weird, prices for 9-10 year old cars at 150% of original invoice value
Did same
@@polovw89True..
They are charging the same price they purchased in after 4-5 years use..
@@sanketnegi1 Arey dada they'll appreciate it over their invoice value and say it is doctor driven, mochi owned, halwai maintained, milkman transferred and all that nonsense
Another problem is Tax state tax, central tax, cess, insurance, road tax, then income tax which we r giving then again 60% tax on petrol & diesel then when car goes servicing again tax,
So TAX TAX TAX. Tax to the power infinity
“Because Indians are all moving to Canada 🇨🇦 “
Indians keep their cars for long. Most of the Indians who bought cars after the Covid will not think about changing their cars for the 4/5 years, hence the sales will not be same as post Covid.
That depends on income?
Buyers of uncertain of the future of automobiles. Those who are diesel fans are fearing a complete ban on diesel vehicles by 2030. Those who want petrol are also worried about the future as the policies are not clear. EVs 😅😅😅
Ms Palki, Indian festive season ends in December. Indians celebrate Christmas too and lot of business comes during that time.
Peoples purchasing power problem need to resolve the purchasing power issue
Govt thought by diverting indias wealth to ambani adani, they will buy all cars, लेकिन उनको विदेशी items पसंद हैं😂
In name of features, prices are rocket skying each year
Sales by brands:
Best sales-
Maruti Suzuki
Hyundai
Tata
Kia
Mahindra
Average sales-
Honda
Toyota
MG
Skoda
Volkswagen
Renault
Poor sales-
Nissan
Jeep
Citroën
Isuzu
BYD
The reason is that there is too much surplus supply of cars in the market by various brands and with multiple models and the actual on road price is double and triple then the base ex showroom price...less demand and more supply....
1)general elections ❌
2) heatwave ❌
1)election result ✅
2)FM budget✅
Main reason is tax (sorry finance ) minister.....nirmala tai
......because they add cess , petrol prices are up , gst on insurance and maintenance , bad roadways , high toll taxes and waiting period for some cars
With car manufacturers taking up ‘digital carpet’ approach, we urgently need leasing business model (consumer centric) for better market penetration. Secondly Govt scrap policy is still on paper. These would help easing the burden.
Finally we collective should explore local manufacturing to bring down the prices..
One thing is glaringly obvious:
Wait
The car prices and taxes are insane in india. Congratulations to Nirmala ji for huge taxes in everything.
Even upper middle class are also feeling the heat of living cost. Govt unrentless in taxing everything. Owning a car may be a dream
40% Taxes
Government making more money than Buyer and Seller
We need public transport infrastructure
Good for 🇮🇳. We do need so many cars. With our congested cities and worst air pollution in the world, we need public transportation. Let these car makers repurpose their factories to make metro rail coaches and fuel efficient buses.
Emission norms, high taxation, no proper policies and pushing useless evs are the major reasons.
Not having proper diesel car is biggest problem
Increasing prices, complex EV transition
If automobile companies keep increasing rates before the end of every quarter, then this will be the situation one day
Still dealers are playing waiting waiting game, my HyCross booked from last year is still in waiting
Lmfao true it’s just like a scam lol they are playing with us to make more demand
The two reasons are just stupid😂 i hope they listen to what they are saying 😂😂
We Indian got to know what's liability and what is the assets
Because we don't have money for basics like food due to incompetent government. Car is beyond thought.
Over priced cars and higher taxation are main causes along economic slowdown.
High unemployment rate, increasing inflation and rising prices of cars plus cars are the biggest depreciating asset
What about taxes???
Its shocking that in this era the auto industry still tabulate primary sales from manufacturers to dealers rather than from dealer to end user.
This leads to pileup at dealer inventory level. Manufacturers do this to avoid carrying inventory or Just in time manufacturing.
Lastly the cost of cars have gone up significantly post 2019. It has to rationalise immediately.
Ek creta car ki 2016 tak top model 15-16 lakh me aa jata tha aur ab 22-23 Lakh me. It happens with every car. otherside quality of cars have been decreased drasticly.
BS 6 ruined car industry...shame on u Gadkari !!
Most people wait for Navrtatri. Key to saving on taxes is buying smaller cars... something under 10 lakhs. I bought a Std. RWD Thar. Next variant had a tax almost 40k higher. Avoid Alloys. Govt taxes the luxuries very dearly. We cant avoid buying cars. But, we can certainly be smart about it.
Well for tata I can personally vouch that their poor after sales service is one factor conrtibuting to the sales drop. You buy tata car you have to live with mentality of owning a truck.
Sold my existing Car
Reason Traffic (Pune)
Now use Ola Riksha if I wish to go out , Best way to beat the traffic
High inventory costs
High rentals
High bank interest rates
High salaries r killing dealers
Real problem is hike in car price.. and decrease quality ....
There was a time when we had options to buy tough suvs within 7lakhs. Now there is hardly any rugged vehicle that comes under 7lakhs. Any rugged 7 seater would cost around 20 to 50 lakhs. For a disel suv 20lakh is too much if we thinks smartly. You can run it only for 10 years. Which means you are spending 2lakhs+fuel cost+ def fluid+maintanance etc each year for driving a rugged suv. I think car makers should come with rugged suv with petrol varriants and should cut some features such as sunroof, electronic seating position, adas, automatic tailgate, request sensors, rain sensing wipers etc. If car makers can bring a budget vehicle with minimal features but with ample space seating capacity and ground clearance including good ride quality and power that would do the job in indian market.
1) good build quality
2) minimum 6 airbags
3) traction control
4) mld ( mechanical locking rear differential only 2x2)
5) rear wheel drive instead of front
6) qualis like space
7)power: 120 bhp @ 4000 rpm of power and 250 Nm @ 1500 rpm of torque.
8) standard music system with a 10 to 12 inch display along with navigation
9) efficient milage with hybrid engine 15 to 24 kmpl
10) power windows
11) steering adjustments
12) optional varriant only****
with cruise control
Dealers are Idiots too!
On a 14Lac re car they ask 75k insurance where On 23Lac re IDV car I am paying 36k insurance and on a 64lac re car I am paying 80k!
So the New car dealer + Manufacturer need to stop fleecing customers