Will cheap small cars be dead in the near future?

NarediAni7518 · 5th November 2021, 14:26

Well I still don’t think that smaller cars will disappear anytime soon in a developing country like India. There are many people who still prefer a smaller car, especially in smaller cities and villages. Also, these smaller cars definitely are excellent beaters.

JJ1991 · 5th November 2021, 14:51

Voted yes since the question contains the word cheap, yes there will be smaller cars especially to folks wanting to run errands in a crowded city it makes perfect sense. In the other the prices won't be cheap.

GeeTee TSI · 5th November 2021, 15:01

Voted yes, I feel our market will also mature where products that offer value (beyond just hygiene factors) will matter to more car buying public.

I do not imply body styles here (it maybe hatchback or CSUV or an estate), but we should hopefully move to well engineered cars which would not be out of place in countries outside our own

Electromotive · 5th November 2021, 16:29

Quote:

Originally Posted by Gansan

They will never disappear.

Future is EV cars. In that segment small will be a big advantage, considering range. I have read $4000 EV cars are already dominating in China. I expect a similar trend to take root in India too, once those cars or similar cars make their way here.

+1
This is exactly how it is going to play out. Cheap, small EVs are going to dominate. Even for robo-taxi services, small pod-like vehicles will be the norm.

sukhbirST · 5th November 2021, 16:47

No, In small towns small cars are still in demand due to cost of ownership and maintenance. Have seen in villages first car still means small which is affordable.

Durango Dude · 5th November 2021, 16:50

That depends on the perception of "cheap": changes from town to town, state to state, country to country: depending on the tax structure, on-road cost, price of fuel and ease and cost of credit. Corolla is cheap entry level in the US and is a D segment luxury car here in India. We in India are close to lowest end of the 'food-chain' or probably 'car-chain'. The el-cheapo cars sold here will not be sold in most of the other parts of the world. Maruti can't sell their car's in Japan as it may not be "fit" enough to be sold there. We Indians define cheap and cheap defines India: Renault Logan was the cheapest of the cheap in Europe but we found the upkeep and parts so expensive. Similarly, Skoda is cheap in Europe but is true blue Upper D segment luxury in India. This is majorly because our Govt wants to keep the car as a luxury item and taxes it very high.

Sebring · 5th November 2021, 18:14

India lives in its villages and cheap, small cars are its lifeline. Cost of ownership and affordability are key parameters if you want to survive the big volumes game. So NO, they're not going anywhere

gomnivazca · 5th November 2021, 18:34

Small cars will definitely be around us. Its just that we might miss the compact dimensions of an Alto or Nano... I personally prefer driving a very compact car in City. Most of the cities are literally over crowded... Roads during peak hours are chaotic... Given if these small cars get improved ride quality... They will live with us.
Cheap terminology will also remain... Definition for cheap also evolves... In 80'S an AC car is luxury... 30 years later a nano with AC,PW, Central locking is deemed Cheap...
To sum up Small cars will be here for good... Only if we get to see very stringent crash norms we wont see these small one disappear.

igemini · 5th November 2021, 21:56

Voted No.

I don't think the small and cheaper cars will die very soon, not just in India but pretty much in any developing country.

There are many reasons for that. The major factor shall be affordability. Not everyone is fortunate enough to buy expensive cars. Especially as their first cars. In line with what GTO stated, in a country like India where even cheap 2 wheelers will taste huge success due to people's affordability. For a vast majority of our countrymen, a car that is as cheap as an 800/Alto is still a dream or aspiration even in 2021.

Only the Millenials or those who have more buying capacity can think of more expensive cars, especially as their first car. I am referring to cars like Taigun, Creta, Nexon, etc. On the other side, I know a lot of people, though they can afford bigger/expensive cars, still opt for small cheap cars due to various reasons. Not everyone considers cars as a status symbol, passion, etc. For the majority of people, it is only a mode of transport from A to B. They may think that a cheaper car is 100 times better than a two-wheeler or even an auto-rickshaw.

Because of all those, I strongly believe that no matter what, cheap and affordable cars are here to stay!

However, I also agree with the fact that more and more manufacturers are turning towards expensive cars due to the profit margin as the smaller cars must generate huge sales volume to get some decent profit. And certainly, the small car market is shrinking compared to that of say 10-15 years ago. Still, they will co-exist.

adisan · 5th November 2021, 22:09

No.
It is a much-anticipated step for many people after a bike.

ashutoshb · 6th November 2021, 00:13

Voted no.

As rightly put by others, cars per 1000 figure in India is still pretty low. Which means, there will be a lot of people upgrading from two wheels to four.

At the same time, my opinion is that the demand towards cars offering more value will increase and no frills bare bones cars will be ignored, even if that means buying used.

gostel · 6th November 2021, 07:29

Voted No.
There is already a large number of Altos running around town so there is no peer pressure to walk away from an Alto. The small car is easier on parking, easier on emissions, and easier on fuel costs. As a personal carrier for running local chores, it is a convenient little box. In the near future, this small car will keep up its sales figures. When electrical vehicles come along and their small cheap varieties are offered then the scenario could change, in the distant future.

amol4184 · 6th November 2021, 07:53

Voted no.

We need to differentiate between small cars and cheap cars/SUVs. To me MS calling S-presso as SUV doesn't make difference - it's still cheap. So does the Ignis which has strange SUV like looks and is cheap.

In Europe 5 of the top 10 selling cars are small cars. I'm pretty sure Japan has similar market. In some places (Asian, many European countries) small cars physically make more sense and I don't think that's going to change any time. Things will change to EV but small cars will be there.

So, small cars will stay IMO. Will they be cheap? Yes. Most likely - compared to larger cars unless they are M or AMG or N something.

clementw · 6th November 2021, 08:58

Cheap is a relative term. Fuel prices have gone up 50% and we accepted. As the costs rise, manufacturers will set the bar higher for entry level and still make an entry level car. Also the customers are evolving and their aspirations are rising so bare bones car may not excite them so much. Entry level cars will be there for volumes but the price will be higher than before.

theqca · 6th November 2021, 11:17

In India what we always wanted and were told was that there will be a car for the "common man" which will be affordable etc.

An alternative to the motorcycle / scooter that the middle class family would normally buy.

Mr Gandhi tried that with the Maruti 800, Tatas tried it with Nano. Both didn't end up as "cheap" or "alternatives" to the family scooter / motorcycle.

I don't see anyone else making an attempt at that segment.

View Poll Results: Will cheap small cars be dead in the near future?
Yes, I'll elaborate below	38	20.00%
No, I'll elaborate below	152	80.00%
Voters: 190. You may not vote on this poll

5th November 2021, 14:26	#46
NarediAni7518 BHPian Join Date: Jul 2020 Location: Gurgaon/JH05 Posts: 132 Thanked: 287 Times	Re: Will cheap small cars be dead in the near future? Well I still don’t think that smaller cars will disappear anytime soon in a developing country like India. There are many people who still prefer a smaller car, especially in smaller cities and villages. Also, these smaller cars definitely are excellent beaters.
	() Thanks

5th November 2021, 14:51	#47
JJ1991 BHPian Join Date: Feb 2015 Location: Kochi Posts: 50 Thanked: 136 Times	Re: Will cheap small cars be dead in the near future? Voted yes since the question contains the word cheap, yes there will be smaller cars especially to folks wanting to run errands in a crowded city it makes perfect sense. In the other the prices won't be cheap.
	() Thanks

5th November 2021, 15:01	#48
GeeTee TSI Senior - BHPian Join Date: Jun 2015 Location: KA01 Posts: 1,347 Thanked: 3,012 Times View My Garage	Re: Will cheap small cars be dead in the near future? Voted yes, I feel our market will also mature where products that offer value (beyond just hygiene factors) will matter to more car buying public. I do not imply body styles here (it maybe hatchback or CSUV or an estate), but we should hopefully move to well engineered cars which would not be out of place in countries outside our own
	() Thanks

5th November 2021, 16:47	#50
sukhbirST BHPian Join Date: Jun 2021 Location: Noida Posts: 279 Thanked: 569 Times	Re: Will cheap small cars be dead in the near future? No, In small towns small cars are still in demand due to cost of ownership and maintenance. Have seen in villages first car still means small which is affordable.
	() Thanks

5th November 2021, 16:50	#51
Durango Dude Senior - BHPian Join Date: Mar 2009 Location: Chennai Posts: 1,967 Thanked: 5,196 Times View My Garage	Re: Will cheap small cars be dead in the near future? That depends on the perception of "cheap": changes from town to town, state to state, country to country: depending on the tax structure, on-road cost, price of fuel and ease and cost of credit. Corolla is cheap entry level in the US and is a D segment luxury car here in India. We in India are close to lowest end of the 'food-chain' or probably 'car-chain'. The el-cheapo cars sold here will not be sold in most of the other parts of the world. Maruti can't sell their car's in Japan as it may not be "fit" enough to be sold there. We Indians define cheap and cheap defines India: Renault Logan was the cheapest of the cheap in Europe but we found the upkeep and parts so expensive. Similarly, Skoda is cheap in Europe but is true blue Upper D segment luxury in India. This is majorly because our Govt wants to keep the car as a luxury item and taxes it very high. Last edited by Durango Dude : 5th November 2021 at 17:13.
	() Thanks

5th November 2021, 18:14	#52
Sebring Senior - BHPian Join Date: Apr 2011 Location: Dubai/Bengaluru Posts: 3,759 Thanked: 11,644 Times	Re: Will cheap small cars be dead in the near future? India lives in its villages and cheap, small cars are its lifeline. Cost of ownership and affordability are key parameters if you want to survive the big volumes game. So NO, they're not going anywhere
	() Thanks

5th November 2021, 18:34	#53
gomnivazca Newbie Join Date: Oct 2021 Location: Chennai Posts: 13 Thanked: 6 Times	Re: Will cheap small cars be dead in the near future? Small cars will definitely be around us. Its just that we might miss the compact dimensions of an Alto or Nano... I personally prefer driving a very compact car in City. Most of the cities are literally over crowded... Roads during peak hours are chaotic... Given if these small cars get improved ride quality... They will live with us. Cheap terminology will also remain... Definition for cheap also evolves... In 80'S an AC car is luxury... 30 years later a nano with AC,PW, Central locking is deemed Cheap... To sum up Small cars will be here for good... Only if we get to see very stringent crash norms we wont see these small one disappear.
	() Thanks

5th November 2021, 21:56	#54
igemini BHPian Join Date: Aug 2019 Location: Kochi Posts: 184 Thanked: 430 Times	Re: Will cheap small cars be dead in the near future? Voted No. I don't think the small and cheaper cars will die very soon, not just in India but pretty much in any developing country. There are many reasons for that. The major factor shall be affordability. Not everyone is fortunate enough to buy expensive cars. Especially as their first cars. In line with what GTO stated, in a country like India where even cheap 2 wheelers will taste huge success due to people's affordability. For a vast majority of our countrymen, a car that is as cheap as an 800/Alto is still a dream or aspiration even in 2021. Only the Millenials or those who have more buying capacity can think of more expensive cars, especially as their first car. I am referring to cars like Taigun, Creta, Nexon, etc. On the other side, I know a lot of people, though they can afford bigger/expensive cars, still opt for small cheap cars due to various reasons. Not everyone considers cars as a status symbol, passion, etc. For the majority of people, it is only a mode of transport from A to B. They may think that a cheaper car is 100 times better than a two-wheeler or even an auto-rickshaw. Because of all those, I strongly believe that no matter what, cheap and affordable cars are here to stay! However, I also agree with the fact that more and more manufacturers are turning towards expensive cars due to the profit margin as the smaller cars must generate huge sales volume to get some decent profit. And certainly, the small car market is shrinking compared to that of say 10-15 years ago. Still, they will co-exist.
	() Thanks

5th November 2021, 22:09	#55
adisan Senior - BHPian Join Date: Oct 2021 Location: Bengaluru Posts: 1,103 Thanked: 1,186 Times	Re: Will cheap small cars be dead in the near future? No. It is a much-anticipated step for many people after a bike.
	() Thanks

6th November 2021, 00:13	#56
ashutoshb Senior - BHPian Join Date: Jul 2006 Location: NOIDA Posts: 1,895 Thanked: 5,094 Times View My Garage	Re: Will cheap small cars be dead in the near future? Voted no. As rightly put by others, cars per 1000 figure in India is still pretty low. Which means, there will be a lot of people upgrading from two wheels to four. At the same time, my opinion is that the demand towards cars offering more value will increase and no frills bare bones cars will be ignored, even if that means buying used.
	() Thanks

6th November 2021, 07:29	#57
gostel BHPian Join Date: Jul 2009 Location: Navi Mumbai Posts: 192 Thanked: 107 Times	Re: Will cheap small cars be dead in the near future? Voted No. There is already a large number of Altos running around town so there is no peer pressure to walk away from an Alto. The small car is easier on parking, easier on emissions, and easier on fuel costs. As a personal carrier for running local chores, it is a convenient little box. In the near future, this small car will keep up its sales figures. When electrical vehicles come along and their small cheap varieties are offered then the scenario could change, in the distant future.
	() Thanks

6th November 2021, 07:53	#58
amol4184 Senior - BHPian Join Date: Oct 2007 Location: Seattle/Pune Posts: 1,347 Thanked: 5,721 Times	Re: Will cheap small cars be dead in the near future? Voted no. We need to differentiate between small cars and cheap cars/SUVs. To me MS calling S-presso as SUV doesn't make difference - it's still cheap. So does the Ignis which has strange SUV like looks and is cheap. In Europe 5 of the top 10 selling cars are small cars. I'm pretty sure Japan has similar market. In some places (Asian, many European countries) small cars physically make more sense and I don't think that's going to change any time. Things will change to EV but small cars will be there. So, small cars will stay IMO. Will they be cheap? Yes. Most likely - compared to larger cars unless they are M or AMG or N something.
	() Thanks

6th November 2021, 08:58	#59
clementw BHPian Join Date: Apr 2020 Location: Chennai Posts: 258 Thanked: 273 Times	Re: Will cheap small cars be dead in the near future? Cheap is a relative term. Fuel prices have gone up 50% and we accepted. As the costs rise, manufacturers will set the bar higher for entry level and still make an entry level car. Also the customers are evolving and their aspirations are rising so bare bones car may not excite them so much. Entry level cars will be there for volumes but the price will be higher than before.
	(1) Thanks

6th November 2021, 11:17	#60
theqca BHPian Join Date: Feb 2013 Location: Bombay Posts: 127 Thanked: 351 Times	Re: Will cheap small cars be dead in the near future? In India what we always wanted and were told was that there will be a car for the "common man" which will be affordable etc. An alternative to the motorcycle / scooter that the middle class family would normally buy. Mr Gandhi tried that with the Maruti 800, Tatas tried it with Nano. Both didn't end up as "cheap" or "alternatives" to the family scooter / motorcycle. I don't see anyone else making an attempt at that segment.
	() Thanks