Wonderful information !. Prices of commonly bought passenger vehicles (2W and 4W) some 30 years ! And my short perspective as a thread !
The vehicle prices in mid 80s cannot be directly compared with today (2018) because many companies mentioned don't exist and many products are not like to like comparable to today. But we can do some quick inferences ! - 1/n
From the data it looks that a low end moped costed Rs 6000 ,a scooter Rs 12000 and Rs 16000 for 100 cc Motorcycle. A sedan (Maruti 800 deluxe) needed a Lakh rupees. All this in mid 80s - 2/n
Now all these figures are ball park. Let's get ball park nos now: Moped 30000 Rs, Scooter 60000 RS, 100 cc Splendour is 55000 Rs. Maruti Alto 800 cc Rs 4.5 lakh !?
Note - All very very approx figures so please don't nitpick. Idea is to find how much auto inflation has been -3/n
Note - All very very approx figures so please don't nitpick. Idea is to find how much auto inflation has been -3/n
So , in short, Automobile prices in India have gone up approx 5-8 x in 32 years . While product features have improved many fold. Quite impressive indeed !
+ From days of CKD and tech tieups, we have now mostly indigenised + exporting too !
+ From days of CKD and tech tieups, we have now mostly indigenised + exporting too !
Just to compare. In last 30 years , approximately gold prices have gone up 12+ fold.
House prices in big cities have gone up 40 to 100 times (or more) last 32 years.
Home rentals have gone up 25+ times last 32 years !
Home rentals have gone up 25+ times last 32 years !
And wages : We can take the salaries of Central Guvt staff as barometer. 1986 fourth pay commission put Entry level group D staff pay at Rs 750 per month, in 1986. Same is over 20000 today. That is , 25x fold rise in 32 years
Net Net, last 32 years, we have had a silent Automobile revolution in India. And they are much more widely owned. And used . And manufactured. Impressive indeed.
The listed businesses Bajaj Auto, Hero Motors and TVS have also given good returns last 30 years.
Also MnM, Tata Motors, Leyland !
In all quite a win win situation.
On sombre note, some players have also gone extinct.
Also MnM, Tata Motors, Leyland !
In all quite a win win situation.
On sombre note, some players have also gone extinct.
We have seen so many disruptions last 30 years hit auto industry of India. BS, Pollution and emission standards, Opening of economy in 1991 and many more . Still Industry has evolved profitably . Most players esp. Some of course went extinct !
All these are pointers to remember when we speculate how next 30 years of Indian Auto industry will be. Disruptions will continue to be there and financially well managed ones will ride over them. Like before .
And on a closing note here is something : Last 32 years, Petrol prices have gone up over 10x in India .Did it stop the growth of Auto Industry in India ? Point to ponder on a weekend ! - n/n.
