Price May Not be the Only Factor After All Before Buying a Car

author image Rishi
Monday 25 May 2009, 00:00 AM

“My children need to travel comfortably,” said Neelakandan Raveendran, 51, who ordered the most-expensive version of the Nano as his first car. There are other who share similar sentiments with Neelakandan Raveendran who do not mind paying for the AC or the cup holder in the car when it comes to buying their first car.

Recent bookings for Tata Nano show that only 20 percent of the bookings in India were done for the bare-bones model and rest were for the mid or the high end models. This means that Tata Motors can reap bigger profits and other auto makers can place their ultra-cheap car models competitively in the market with additional features.

Renault Nissan Bajaj and Toyota intend to bring their ultra-cheap cars in the market in next three years. Presently, Bajaj seems to have a little difference of opinion with its counterparts regarding positioning of their new car. While Bajaj wants to go ahead with the idea of better value for money, Renault-Nissan intends to reap the profits on the pricing strategy. Now looking at the present booking patterns for Nano, they need not be drawn down to the pricing war.

Income levels in India have already doubled in India in past eight years along with their idea of better living and lifestyles. People are now willing to pay more for their comfort and luxuries especially for products like cars which are usually long-term buy for any normal Indian family.

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