First time car buyers in India are shifting from the entry level cars to premium hatchbacks


The times of small cars like Maruti Alto, 800 and Hyndai Santro has now started changing. Interest of first time car buyers is now shifting towards premium hatchbacks like Maruti Swift, Swift Dzire, Hyndai i20, Ford Figo, Honda Brio and Toyota Etios owing to the surge in disposable that India has witnessed riding on its economic growth of the past decade. The lack of cheap diesel cars in this price segment is another reason why people are towards this side of the pendulum.

 

Since, petrol prices have raised manifold in the past few years owing to the strategy adopted by Indian government to deregulate petrol prices, popularity for diesel cars has seen a boost. Diesel still remains under government deregulation and as a result the shift towards dearer diesel hatchbacks that offer economies of scale to consumers who have a daily run of 50kms or more in a day. The percentage of first time for a car is varied and depends on the car itself for example Ford Figo has the most amount of first time buyers running at 65%. Whereas, In case of Swift and Swift Dzire it stands at 30-35%, Toyota Liva 25%, Etios at 18% and Honda Brio at 33%.

 

 

Source: Economic Times

Photos: Indian Cars Bikes, Indian Autos Blog, Tech Express

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