Automobile Blog March Archive

Cheap Cars In India - Not So Cheap

By Car Agent at 03/22/08 10:05

Indian manufactured cars seem to be cheap. They are actually really cheap, for the first world nations especially in Europe and US and some part of Asia. But cheap cars in India do not really rhyme with what it really means in the country.

An average per capital income of each Indian is only $500. The big population of India, one of the biggest in the world, mainly use scooters and motorcycles. That is the reason why they were once called the land of two wheels.

Nissan plans to make cars for India with a relatively cheaper price than those of the other car manufacturers in the country. They would like to introduce a car that is only worth $2,500, almost half of the price of what Suzuki called cheap with their $4,500 car.

However, for the past few years, the world has seen how important India's role in the car manufacturing world. Cars made in India can be of two types, it can be a custom made car for the Indian car market or it can be a niche car of which buyers from around the world are craving for.

India also plays a big role for Asian car giants. They built large plats for mass production of cars that are distributed all over Asia including Hyundai, Toyota, Nissan, Suzuki and local brands such as Tata, Skoda and Mahindra. These cars are 'cheap' for many people but for the more number or Indian citizen, its way off their budget. Recently, General Motors, Ford and Chevrolet joined the concoction of brands in the country. And I doubt if they will lower their price ro meet the 'cheap' price for most Indians.

It very Ironic how a big country with many billionaires and big population, of which some are ranked as world's richest persons, suffer this low per capital income. And its really no surprise why most of their locals chose to ride scooters and motorcycles rather than owning a car.

How Cheap Is Cheap?

Seriously, how cheap is cheap for a car?

Asking that to yourself, ask first what is the car that you really want. How cheap is cheap for a brand new car and for a used car. With that question, many analyst said a car that is below US$3,000 is cheap. But, a car that cost that low doesn't have all the features all people need.

If we are going to battle out car manufacturers who manufacture cheap and high priced cars, then it would be like US-Europe vs. Asia. A lot of people know that cars made in Europe and also in US are high valued, high priced of which an ordinary looking car would cost you more than tens of thousands of dollars. While on the other hand, Asian manufactured cars are happy enough to have their cars at the maximum of $8,000.

Small scale and not so popular car manufacturers in Asia like Hyundai, Suzuki, Kia and a lot others are commonly made in India and China. These two countries offer cheap cars that are distributed all over Asia. But reports said that they are also trying to export their cars now in the US and in Europe.

But the battle for cheap cars isn't really not solely dependent on the price. Its still best to look on the quality of the car. Just like for example, a European car will sell for at least US$15,000 for a car that is ordinary looking, not luxurious, with moderate size, with complete basic needs but came from a known brand. While on the other hand, a car that is made in India will most likely sell for US$5,000-$6,0000 but it is poorly featured with equipment, because most of these cars do not have their own air bags and anti lock brake. Those are parts of a car that must not be forgotten because that is an investment for safety.

However, studies shows that there really isn't car at the moment that reached the desired cost for a 'cheap car' that comes with the complete features and the desired features of the people.

Let us wait who will create the first complete featured cheap car.