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By Rajkamal Rao
Go back to Comparing Life US v. India
US residents have literally hundreds of car models to choose from. National safety standards exist and are enforced - and this means that even entry level cars are equipped with good safety features. Top of the line cars in each car segment offer nearly the ultimate in luxury. Although car prices have risen in recent years, adjusted for inflation, a mid-sized sedan costs about the same it did nearly 20 years ago but is more reliable, is of higher quality and loaded with features of safety and convenience. Even with the steady increase in gasoline prices in recent years, pump prices in the US are affordable compared with those of other developed nations. As a result, it is common to see Indian families in the US drive expensive cars and SUVs, and easily take long-distance family vacations.
The Indian situation is different but is catching up with that of the west. The Detroit News reports that India is projected to overtake Japan as the world’s No. 3 passenger-vehicle market this decade. According to the Society of Indian Automobile Manufacturers (SIAM), Maruti, which is majority owned by Suzuki of Japan, has a commanding market share of 40%. The other brands in the Top 5 have market shares as follows: Hyundai - 14%; Tata - 13%; Mahindra - 8%; and Toyota - 6%. GM and Ford have a combined share of 6.5%.Most buyers in India prefer hatchbacks to sedans. Shown here is a Maruti Zen Estilo, a popular hatchback, which retails for INR 3.6 Lakhs ($6,500).
While entry level models (Tata Nano) are souped up versions of a three-wheeler and are not appealing to a returnee family, many auto brands popular with Indians in the US - Toyota Camry, Honda Accord, Honda CR-V - are available in India today. Prices are approximately double of what they are in the US for the same model and these are largely because of taxes and fees. Additionally, because of poorer road conditions and much higher traffic density, many returning Indians step down one or two notches when choosing a car - selecting a Honda City in India (smaller than a US Honda Civic) when they may have been driving a Honda Accord in the US.
SUV owners will find a range of models (and prices) to choose from. Data below is from 2012 showroom price lists and for the lowest priced in each line.
Tata Sumo, INR 5.23 Lakh
Mahindra Quanto, INR 5.82 Lakh
Renault Duster, INR 7.19 lakh
Chevrolet Tavera, INR 7.51 Lakh
Tata Safari Storme, INR 9.95 Lakh. The Safari is the most popular SUV in India
Toyota Fortuner, INR 21.75 Lakh
Mitsubishi Pajero, INR 22.56 Lakh
Hyundai Santa Fe, INR 24.4 Lakh
Audi Q3, INR 26.21 Lakh
Mercedes Benz ML Class, INR 45.6 Lakh
Audi Q7, INR 55 Lakh
Toyota Land Cruiser, INR 88.5 Lakh
Gasoline is expensive in India with prices retailing for about 76.5 INR/liter in most metros (about $5.60/gallon) as of March 2013. Diesel is subsidized by the government and retails for about 50 INR/liter (about $3.60/gallon) and is slightly less expensive than pump prices in the US. For this reason, diesel cars in India are extremely popular although they cost more than equivalent petrol models. Shown below is a Bharath Petroleum service station selling both petrol and diesel.
As the Indian auto market matures further, it is safe to conclude that a returnee Indian family does not have to make major compromises when it comes to selecting, owning and driving good cars.
Go back to Comparing Life US v. India
US residents have literally hundreds of car models to choose from. National safety standards exist and are enforced - and this means that even entry level cars are equipped with good safety features. Top of the line cars in each car segment offer nearly the ultimate in luxury. Although car prices have risen in recent years, adjusted for inflation, a mid-sized sedan costs about the same it did nearly 20 years ago but is more reliable, is of higher quality and loaded with features of safety and convenience. Even with the steady increase in gasoline prices in recent years, pump prices in the US are affordable compared with those of other developed nations. As a result, it is common to see Indian families in the US drive expensive cars and SUVs, and easily take long-distance family vacations.
The Indian situation is different but is catching up with that of the west. The Detroit News reports that India is projected to overtake Japan as the world’s No. 3 passenger-vehicle market this decade. According to the Society of Indian Automobile Manufacturers (SIAM), Maruti, which is majority owned by Suzuki of Japan, has a commanding market share of 40%. The other brands in the Top 5 have market shares as follows: Hyundai - 14%; Tata - 13%; Mahindra - 8%; and Toyota - 6%. GM and Ford have a combined share of 6.5%.Most buyers in India prefer hatchbacks to sedans. Shown here is a Maruti Zen Estilo, a popular hatchback, which retails for INR 3.6 Lakhs ($6,500).
While entry level models (Tata Nano) are souped up versions of a three-wheeler and are not appealing to a returnee family, many auto brands popular with Indians in the US - Toyota Camry, Honda Accord, Honda CR-V - are available in India today. Prices are approximately double of what they are in the US for the same model and these are largely because of taxes and fees. Additionally, because of poorer road conditions and much higher traffic density, many returning Indians step down one or two notches when choosing a car - selecting a Honda City in India (smaller than a US Honda Civic) when they may have been driving a Honda Accord in the US.
SUV owners will find a range of models (and prices) to choose from. Data below is from 2012 showroom price lists and for the lowest priced in each line.
Tata Sumo, INR 5.23 Lakh
Mahindra Quanto, INR 5.82 Lakh
Renault Duster, INR 7.19 lakh
Chevrolet Tavera, INR 7.51 Lakh
Tata Safari Storme, INR 9.95 Lakh. The Safari is the most popular SUV in India
Toyota Fortuner, INR 21.75 Lakh
Mitsubishi Pajero, INR 22.56 Lakh
Hyundai Santa Fe, INR 24.4 Lakh
Audi Q3, INR 26.21 Lakh
Mercedes Benz ML Class, INR 45.6 Lakh
Audi Q7, INR 55 Lakh
Toyota Land Cruiser, INR 88.5 Lakh
Gasoline is expensive in India with prices retailing for about 76.5 INR/liter in most metros (about $5.60/gallon) as of March 2013. Diesel is subsidized by the government and retails for about 50 INR/liter (about $3.60/gallon) and is slightly less expensive than pump prices in the US. For this reason, diesel cars in India are extremely popular although they cost more than equivalent petrol models. Shown below is a Bharath Petroleum service station selling both petrol and diesel.
As the Indian auto market matures further, it is safe to conclude that a returnee Indian family does not have to make major compromises when it comes to selecting, owning and driving good cars.
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