Some popular mass market cars see a fall in prices. The Maruti Suzuki Alto prices go down by Rs. 30,000/- and the Honda City 1.5-litre petrol variant price drops by Rs. 60,000/- compared to a decade ago.
The general trend in the automobile industry is that prices keep rising. In recent news, the prices of major cars like the Maruti Suzuki Alto and Honda City have turned out to be lesser than what they were around 15 years back. The reason being bigger volume of cars being manufactured, lower cost per unit, better price of components and higher amount of local components used. This price depreciation will surely attract more customers.
India’s best seller, the Maruti Suzuki Alto is a good Rs. 30,000/- cheaper than what it was priced back in 2001. Similarly, the Honda City 1.5-litre base variant is Rs. 60,000/- cheaper than what it was in 2001. All these next-generation versions of the models available in 2001 have undergone a lot of changes in terms of technology, safety, emissions and mileage. However the luxury cars have seen a hike of 100% in their prices.
What brings the cost down is the aggressive localisation of the vehicles and collaboration with vendor partners. Keeping the prices low is obviously a survival instinct that automakers have to adapt. The competition has raised to such a level that car makers have to control the costs and fit in the price sensitive category. Thus the fall in prices.
Customers and regulatory authorities demand tech-upgrades that need to be worked upon. The duty structure on passenger cars has not helped the car market. Excise duty on passenger cars was about 66% in 1991 which came down to 40% by 1995. Excise duty has not changed much with a little hike since 2001. All such factors affect the automobile industry.
Maruti Alto & Honda City Prices Reduce Over Time
– Maruti Alto prices go down by Rs. 30,000/- in 15 years
– Honda City 1.5-litre base petrol variant price is Rs. 60,000/- cheaper than 2001
– Prices fall due to localisation and collaboration with vendor partners
– Little hike seen in excise duty