In the country, the average selling price of cars has increased by up to 50 per cent in the last five years, according to industry sources.
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| Vehicles sales. |
In this regard, it was informed by the persons related to the department,
Last year 2018-19, the average selling price of cars was Rs 7.65 lakh. Current expenditure on 2023-24 has increased by more than 50 per cent to Rs 11.50 lakh.
Consumer preferences towards luxury amenities, changing regulatory norms and craze for SUVs are the main reasons behind this price hike.
Customers want more comfort in their vehicles. They opt for the 'top end' model with more features.
For example, nobody buys cars without AC these days. But there was a market demand for it at an earlier period.
Also, there has been a big change in choosing the type of vehicle. People now prefer to buy SUVs rather than hatchbacks.
Average selling price of passenger vehicles2018-19 Rs. 7.65 lakhs. 2023-24 Rs. 11.5 lakhs. 50% increase.
As a result, vehicle prices have also increased.
Inflation, higher raw material prices, brand strength, efforts towards higher safety and emission standards are seen as reasons for the increase in costs.