[KadiNiSikhiya]

I'm a total newbie when it comes to cars and have never bought one myself. I do intend to buy one soon but before doing any kind of real homework/groundwork a thought, rather a question, came to my mind.
Why buying a car in India is so different from any other high value consumer good, let's say a big screen OLED panel ?
The way I see it, both items are displayed in a showroom. One can go and check them out, analyse their features and in case of a car, one can even take it for a test drive. Yet when the actual purchase is to be made, you can actually walk out the showroom with the item you wanted, or get it in a day or 2 if "stock issues" are there.
Compare this to a car, let's say Mahindra Scorpio which are dime a dozen on Indian roads and also available in stock in dealerships (I'm assuming this due to vehicle's age and popularity). Now, if one wants to buy it, one has to wait before taking the delivery. This wait can be anywhere from a week to a month.
In case of new launches, waiting period is understandable and can also accept the "chip shortage" thing but still the question remains is that why buying a car isn't as easy and fast process as buying any other retail good?

[Sanidhya mukund]

A few reasons I can think of:

1. Maintaining a stock of TVs/Refrigerators etc. is easier than maintaining a stock of automobiles. You can simply put X number of packed TV boxes in your shop/godown. For stocking cars, you not only need a lot more capital, but also need more space.

2. With a car purchase, there are so many formalities and documents like registration, Insurance, loan approvals if going for finance etc. With a TV, you simply need the invoice and the warranty card.

3. An average TV factory probably produces far greater volumes than a car factory.

4. Cars have a lot more variants than a TV or fridge. For example, an LG plasma TV will probably have a variation only in terms of screen size. The shop can easily decide to stock a few popular sizes. On the other hand, a car is available with variants, colours, engine options, transmission options, customisation packs etc. One customer could want a red Altroz diesel in the XE variant with the rhythm pack while another customer could want the top of the line Turbo petrol in blue.

5. A car purchase involves a lot more deliberations and discussions. For buying a TV, one can visit a multi brand outlet, compare the options on display and buy the one you like. For a car purchase, after researching online, one visits multiple showrooms and does so multiple times. It takes a few visits and test drives to find your ideal car.

6. The logistics involved in bringing a car from the factory to the showroom is a lot more complicated.

7. There are also situations where you can go to a showroom with cash in hand and ask “what car can you deliver today?” And you’ll surely get options. As an example, the dealership I bought my car from 8 years ago had the W204 C-class and B200 readily available. However, booking a new W212 would have involved a couple of weeks of waiting if one wasn’t ready to get a previous model year car.

[fhdowntheline]

I think the answer is simple. The cheapest and most common new car is significantly costlier than a costly consumer product, barring exotic stuff like jewelery and luxury watches. A good upper segment fridge or TV costs less than an Alto. Hence a car purchase is not considered to be like a regular retail transaction.

[AJ56]

Originally Posted by fhdowntheline

I think the answer is simple. The cheapest and most common new car is significantly costlier than a costly consumer product, barring exotic stuff like jewelery and luxury watches. A good upper segment fridge or TV costs less than an Alto. Hence a car purchase is not considered to be like a regular retail transaction.

Will have to disagree, take a 16” MacBook Pro and spec it out and you’ll be over 5L, add in a 1Tb iPhone 13 pro max and you’ll be over 7L. Hell my 65” Samsung tv back in 2015 was over 4L. These are not ‘exotic’ products like Rolexes or Luis Vuitton/Fendi apparel, but mass consumer products. An Alto is 3.5L on road which is much, much cheaper.

[pandabear]

Originally Posted by AJ56

Will have to disagree, take a 16” MacBook Pro and spec it out and you’ll be over 5L, add in a 1Tb iPhone 13 pro max and you’ll be over 7L. Hell my 65” Samsung tv back in 2015 was over 4L. These are not ‘exotic’ products like Rolexes or Luis Vuitton/Fendi apparel, but mass consumer products. An Alto is 3.5L on road which is much, much cheaper.

I am so sorry to disagree with you, but it's a flawed argument here. It also boils down to an individual's purchasing power. For a person who can afford a Bentley, buying an Alto is not a big deal. Practically loose change!
Basically what I'm trying to convey is, if you can afford a TV worth couple of lakhs you probably would not be giving much thought for an Alto purchase. But for middle class family going in for a first car purchase on a bank loan the thought process is completely different. Basically not an apple to Apple comparison. Again my apologies for my post when no intention to hurt.

[AJ56]

Originally Posted by pandabear

I am so sorry to disagree with you, but it's a flawed argument here. It also boils down to an individual's purchasing power. For a person who can afford a Bentley, buying an Alto is not a big deal. Practically loose change!
Basically what I'm trying to convey is, if you can afford a TV worth couple of lakhs you probably would not be giving much thought for an Alto purchase. But for middle class family going in for a first car purchase on a bank loan the thought process is completely different. Basically not an apple to Apple comparison. Again my apologies for my post when no intention to hurt.

No need my friend, value is a subjective criterion. We can agree to disagree all day without issue.
I gave the examples to illustrate how normal consumer products can cost much more than an Alto, whether an individual can afford them (or an Alto) is a different matter altogether.

[pandabear]

Originally Posted by AJ56

No need my friend, value is a subjective criterion. We can agree to disagree all day without issue.
I gave the examples to illustrate how normal consumer products can cost much more than an Alto, whether an individual can afford them (or an Alto) is a different matter altogether.

Thanks for being a sport, just sucks when people are touchy and i avoid any situations that may lead to arguments on social media just for my own selfish peace of mind.
:

[fhdowntheline]

Originally Posted by AJ56

Will have to disagree, take a 16” MacBook Pro and spec it out and you’ll be over 5L, add in a 1Tb iPhone 13 pro max and you’ll be over 7L. Hell my 65” Samsung tv back in 2015 was over 4L. These are not ‘exotic’ products like Rolexes or Luis Vuitton/Fendi apparel, but mass consumer products. An Alto is 3.5L on road which is much, much cheaper.

Yes, there will be exceptions. But in my books, a bespoke Mac Pro is at the pinnacle of the personal pc retail world, more or less. One can have a fairly powerful Windows laptop for everyday use at much less. That Samsung 65in TV costs about 1-1.4Lac nowadays. My basic point is, most things that a normal (statistically speaking) family aspires for , can be purchased at a price much less than the cheapest car, without compromising on essentials too at that.
Not everybody can just go to a showroom, swipe a card and walk out with a car. To that extent, a car is not like any other retail purchase.

[WorkingGuru]

Developing & manufacturing White Goods is far cheaper than cars and cars require a set of conditions to be met and regulations to be complied with, which are far more complex than household goods (as the usage & purpose of cars is significantly different).

No matter the scale of demand and manufacturing capacity, cars will need to comply with those regulations and since that requires proceedures which take time - car delivery takes time.

[AJ56]

Originally Posted by fhdowntheline

Yes, there will be exceptions. But in my books, a bespoke Mac Pro is at the pinnacle of the personal pc retail world, more or less. One can have a fairly powerful Windows laptop for everyday use at much less. That Samsung 65in TV costs about 1-1.4Lac nowadays. My basic point is, most things that a normal (statistically speaking) family aspires for , can be purchased at a price much less than the cheapest car, without compromising on essentials too at that.
Not everybody can just go to a showroom, swipe a card and walk out with a car. To that extent, a car is not like any other retail purchase.

I think you’re confusing two very separate machines, I’m talking about the laptop, the MacBook Pro which is pre configured from the factory (you just select the variant you want), it’s not customisable and costs 2-5L depending on the variant chosen. Its far from the pinnacle of personal pc as an iMac Pro would be closer to that, and it’s more expensive.

A Mac Pro is an entirely different animal in that it is the most powerful computer you can buy from Apple and fully specced its well over 50L. And this is before the monitor or other accessories, but this is aimed at professionals/businesses more than individuals that’s why I didn’t mention it before.

[adisan]

Originally Posted by KadiNiSikhiya

... the question remains is that why buying a car isn't as easy and fast process as buying any other retail good?

Looking at it from the buyer's perspective, though it does not directly answer the question:

Consumer goods, even the most expensive, are usually seen as bringing some value. They are just treated as "mine".

But most people treat a car as an extension of themselves. Therefore the buying process is more difficult. In course of time, as the car starts becoming "mine" from being an extension of "me", they look to buy a new car.

[GrammarNazi]

This is not just with cars, but many of the things that people aspire to own, are increasingly being democratised with consumerism catching on (as more and more people find economic prosperity).

So, while I understand the urge to purchase things with ease, and I'm NOT opposed to it, IMO their intrinsic value erodes when its sold like a vegetable.

This is not just with cars, it could be joining a college, or the first (or sometimes second) job, or first house etc. Certain life events should have a sense of occassion, lent possibly by an unavoidable process/ceremony. One may not feel the need for it at the time, but it's only later when we live to learn & experience things, that we realise the importance of the process.

The process & ceremony defines the gravity of the life changing event. It may not be all for you to experience, but for the people around you too. Its why cars are bought & delivered all decked up with ribbons & a sacred blessing.

This is why, when buying used cars, you'll notice that many 1st owners make it a point to take care and maintain the car closest to the condition it was originally bought. Often with no expense spared.

Hope you get the gist of what I'm trying to say.

Originally Posted by AJ56

...A Mac Pro is an entirely different animal in that it is the most powerful computer you can buy from Apple and fully specced its well over 50L. And this is before the monitor or other accessories, but this is aimed at professionals/businesses more than individuals that’s why I didn’t mention it before.

Unless that Mac Pro is partly controlling the Mars Rover or atleast an underground Metro Tunnel Boring Machine largely by itself, ₹50 Lakh for a desktop business computer is

[SmartCat]

Originally Posted by KadiNiSikhiya

In case of new launches, waiting period is understandable and can also accept the "chip shortage" thing but still the question remains is that why buying a car isn't as easy and fast process as buying any other retail good?

Car manufacturers need to keep a much closer watch on inventory than electronic or electrical goods manufacturers. Because car sales are hugely limited by geography, unlike electrical/electronic goods.

A smartphone produced in China can be sold almost everywhere. If Xiaomi ships 100,000 units of a phone to Vietnam and it ends up being a sales dud, it can be diverted to India or Africa with minimal costs.

But a car produced in China cannot be sold everywhere. If Great Wall produces 100,000 units of a SUV and it ends up being a sales dud, clearing this inventory takes a lot of time & money. That's because cars produced in one country can only be sold in handful of other nations.

[Raghu M]

Let's put it this way. You will find costly diamonds (maybe upwards 25 or 50 lakhs if you want to purchase) readily available as it doesn't come from a manufacturing plant. The size is small, value is high. Diamonds do not lose value if stored for years together. It would be the same for costly gadgets too but new model arrivals would make the older ones redundant.

Now take cars, while manufacturing itself is a complex job, transporting, storing and keeping them in top condition is a challenge in itself. You cannot leave cars for months together in the yard. You need a lot of manpower to manage this. You will find similar operations with the larger machines too. You just cannot walk into a JCB store and buy a bulldozer, it will have waiting period. It will be manufactured for a specific individual/firm as advance is taken. The company knows that the product has a buyer as soon as it is out of the assembly plant. Same thing with choppers or aero planes. You cannot just buy a Cessna business jet or a Bell chopper by walking into their showroom or calling their representative. You have to place an order, pay an advance and wait.

[Mi10]

Automobiles in general are a separate class / division / domain by itself and cannot be brought under consumer goods. Right from the way cars are made, down to its usage and the need for mandatory registration, An Automobile is vastly different from a Consumer good. Concept of Inventory for Cars is actually a new age concept (perhaps post late 90s ? ) . I remember people saying they waited for 6 months to take delivery of their Chetak or Padmini in late 80s. Where Inventory was bread and butter for any other Consumer good. Cost is a big reason, but not the only reason. Other things like Weight, Size, Dimensions matter a lot in having a consumer good type inventory.