[Siavi]

Originally Posted by JediKnight

Meanwhile rents in Hyderabad have suddenly skyrocketed. The same crappy apartment that I live in rents have suddenly become 33% higher. For my kids the school increased fees and transport fees by 10% in just a year. Small 3bhks in my area are now 2 Crores plus registration plus cost of interiors if you can afford it. Plus, a massive FOMO created by builders. Buy now or we will increase rates so that you will be priced out forever.

Seems like everyone (Government, Real Estate, Schools etc.) are out there to suck the blood of the middle class.

The same is happening here in NCR as well. The prices of flats here have doubled in the last 4 years, and the same has happened to the rents as well. In my society, home owners have increased rent by almost 50% in the last 2 years, in comparison to earlier norm of 10% every 11 months.

[ashvek3141]

Seems like things have started to show some improvement in real estate sector too.

Bangaluru-landlords-start-compromising-on-apartment-rents-as-techies-move-away-from-it-corridors

[dextor]

I think for all this fiasco we as the public is to be blamed.
After covid, people started spending with no bounds. Everyone was buying new cars, apartments and going on foreign trips. Even the people who had no intention to spend were swayed by seeing others. There was a queue of people flocking for Maldives, Europe etc.

With so much instant spending the inflation had to rise which in turn reflected in price rise.
But I still see a segment of people spending unnecessarily. I believe during covid times IT sector was on boom and the salary hikes were unprecedented. People got hikes in the range of 100-200%. With sudden money flowing, people tend to spend excessively.
After joining job it took me almost 4-5 years to buy my first car but now almost all freshers are buying cars and staying in lavish apartments.

In the evenings I can see line of food delivery agents and probably in my apartment between 7 to 10 pm there would be around 500 deliveries. Looks like people have stopped eating home food.

No different are the rates of flight tickets. BLR-DEL sector used to be in 3-5k range. Gone are those days. Now even if the plane is half empty, the prices are not reduced. Airlines know people will pay if they have to fly and discounting is not needed.

Above factors are reason enough for price rise where certain segment is able to absorb but creates difficulty for other segment of people.

[ringoism]

https://timesofindia.indiatimes.com/.../106817499.cms

One has to wonder at the timing of this: Especially the registration fee incentives for new replacement cars, the strong-armed assurances of forced scrappage compliance - When till now this state can't even manage to control traffic safety violations, or ensure that PUC centers bother to put the probe in the pipe (they never do around here) before printing out a PASS certificate!!! Meanwhile newer "gross polluters" ply daily with big clouds of smoke behind. Who's enforcing compliance there? Such a self-serving farce!

Feel you can't afford a new car? They'll ensure you become enslaved to corporate/state lenders!!!

-Eric

[sudeepg]

To all those who are saying manufacturers are greedy - are out of reality. A car that is over 4 meters in length and up to 1500 CC engine capacity, costs 13 lakhs at ex-Factory. That becomes 19 Lakhs at Ex-Showroom.

Don't believe me? Just check the invoice from dealer. Here's an example of a top selling SUV:



Surely, manufacturers are greedy, and the government is a saint!

[petrogeek]

Originally Posted by krishnakumar

+1000 to this.

And this is going to be seen everywhere, not just in cars. Call me a bear but I’m really not clear on why there is a bull run literally everywhere. My honest question is this, who is really making money in this country??

C'mon you know the answer to that already. Inventory pileup is a sign that the economy may be slowing down, inflation inching upwards, disposable incomes drying up. To broad base the argument, rural spending is also another indicator of economic growth/de growth. I do hope some serious economic push that actually enhances peoples incomes are in the offing.

[Guna]

Originally Posted by petrogeek

Inventory pileup is a sign that the economy may be slowing down, inflation inching upwards, disposable incomes drying up.

What does the data say? Have the car sales come down or growing at very low rate? I wonder if the inventory piling up is due to the overambitious forecast which has prompted the manufacturers to produce so much more.

[SS80]

Currently, a lot of people are buying cars from a segment or two higher than their current affordability, which puts their future finances in trouble.

People who can ideally afford an Alto are now pushing further to buy Punch and Altroz. Prices of every single commodity are increasing, but salaries are not being hiked that well for most of the crowd.

Eventually, we are not only looking at the piling up of car stockyards, but also people defaulting on their loans sooner or later. Some of my colleagues earn about 60K a month and are happily opting for cars that have a 15 to 18K emi. Some of them are already finding it difficult to keep up with other expenses. Only God knows what they are headed towards. I made this mistake in 2018 and had to take corrective steps that cost over a lakh rupees in losses. I cannot digest spending even 20% of my salary on a car EMI, forgetting fuel and other costs.

I wonder if it's only Bangalore or whether the whole country's cost of living has shot up a lot over the last few years.

[blueEyed16]

Will the 2-wheelers market follow the same trend?

[msdivy]

How many can easily afford cars but not buy them due to the lack of infrastructure (narrow roads, no parking availability, poor road manners) + driver salary?

[SchnelleKurven]

Originally Posted by SS80

Currently, a lot of people are buying cars from a segment or two higher than their current affordability, which puts their future finances in trouble.

Eventually, we are not only looking at the piling up of car stockyards, but also people defaulting on their loans sooner or later. Some of my colleagues earn about 60K a month and are happily opting for cars that have a 15 to 18K emi.

Totally agree. This is classic case of people judging affordability of cars by checking if they can ‘afford’ monthly EMI. Now a days even e-commerce sites have started quoting prices in EMI than total cash price.

This EMI affordability folly allows people to literally leverage their purchase to the detriment of their financial well being. The questions should always be if one can afford to purchase the car outright. Taking loan to purchase a depreciating assets like cars, phones , durables makes no sense for non-business salaried class. But YOLO and FOMO pushed into our faces by Social Media is in vogue today; OEM’s and government have only made hay

This EMI affordability trend also reflecting in falling savings rate and increasing consumer debt in India. I barely can control myself when I see companies selling personal debt as a ‘friend’ to all age groups.

We are going the USA way, to keep up with the Jones, folks are risking their future. One only needs to hear the Dave Ramsey YouTube channel to forecast India’s future.

[rakesh_r]

Originally Posted by SchnelleKurven

Totally agree. This is classic case of people judging affordability of cars by checking if they can ‘afford’ monthly EMI.

The sad thing is, people just factor the ability to pay the EMI. What about cost incurred on Insurance renewals, service costs etc?

[Iva1311]

Absolutely agree with the views of people here. I was in the market for buying a secondhand car as a secondary car. I searched the market and found that even 10-year-old vehicles are priced exorbitantly.

There is a rule, if you want to buy something wait for 30 days. You will eventually know whether you need it or not.

I happened to wait 30 days due to a wedding at home and now after two months, I do not feel to buy a second car.

People should really stop buying things they don't need.
For the 15/10 year car scrapping rule. This is absurd. Those cars are in 'good' if not 'fair' condition. Two of my uncles have been running their Zen and 800 for 20 years now. Those metal blocks were built rock solid with simple engineering and easy to maintain.

[MadMaxDiesel]

Originally Posted by Siavi

I just hope that this doesn't lead to the auto lobby colluding with the government and the subsequent implementation of the 15/10 year car ban throughout the country. This would force people to buy new cars, just like the residents of NCR are forced to, even if they don't want to.

If they do this, then this will be the final nail in the coffin for the lobby/ NGT. This could lead to mass protests as the number of people affected by this draconian rule will increase many many folds.
Currently only NCR people are affected which BTW has many high income groups and thus replace their vehicles before 10/15 years. But nationwide the game will change.

[sagsaw]

Post covid, feel good factor and revenge buying has saturated and tapered off and reality suddenly has dawned.

Thats the main reason for the huge inventory.

Expected recession not coming, cost of living going through the roof due to which possibly weekend getaways and road trips have been put on the last priority by households also are adding to the inventory pileup.

I think something is coming in the current budget which is making people wait.