For buying a new policy call 094444 48899. For customer service call 1860 425 0000.
Search The Blog
Posted by Royal Sundaram on 24 Aug 2015
The year 2015 is proving to be a dichotomy.
With the many exciting launches scheduled in the coming year, auto enthusiasts and aspiring car owners have all the reasons to rejoice and plan their next exciting ride. However, the year also has seen some developments that may make buying that dream car, a tad bit more costly.
The last few years have been sluggish for the auto segment, with sales dropping to an all-time low in all passenger car segments. To counter this, the preceding UPA government had announced a cut in excise duties to make cars more affordable to buyers and to help boost sales. The newly elected government at the Centre has now reversed this decision and has announced that this excise cut will not continue beyond December 2014. The decision came after the NDA government granted a 6 month reprieve (June 2014 – December 2014).
With car makers still reeling from the sluggish sales of the previous years and with increasing costs of manufacturing and components, a price was in any case, inevitable this year. However, with the changes in policy, the hike is expected to get steeper. However, in order to counter this and boost sales, a lot of cars are expected to be launched in the mid-price or low price segment and aggressively priced.
What this means for customers, is that you will have to now pay more for the cars of your choice. While you are spoilt for choice with the various options available, you may have to settle for a variant below your ideal or for another make of car itself, if you have a tight budget. The good news is that, given the developments and the need to keep sales up, car makers are offering the best value-for-money features in all segment variants, so in actuality, you would not be missing out too much.
India, being the 7th largest automobile market, will see many car makers use this relative downturn to bring the best of their stables into the country for a launch or even for manufacturing to keep costs low. This would mean better cars and at aggressive prices. From sub INR 4 lakh to 40 lakhs, there are cars to meet all budgets, all feature requirements and definitely, all aspirational needs as well.
Price ranges for car will continue to differ from state to state, given the variation in levied taxes and octroi duties, however the overall price increase would range from Rs. 15,000 to about Rs. 150,000 overall, taking everything into account.
The verdict – Cars will be costlier to own, fuel prices will increase and overall, while the temptation will be enormous, limitations and challenges will need to be overcome, before your get your ‘dream car’.
The silver lining here, however, will be that you can choose to be prudent and remember to check with Royal Sundaram Car Insurance for better offers on your car insurance before signing one with your dealer! This small step could be just what you need to get that ride you always wanted, soonest!
Join over 25,000
of your peers and receive our italk (insurance talk) newsletter with actionable advice on travel, motor, health and home needs right in your inbox!
*We won't spam you, promise