Who do you think goes out and buys a car?
Well there is no great detailed survey in India. It is in the US that you have extremely granular data about car buyers. So you can only guess what kinda people buy cars, right?
Well in a poorly sampled study they found that people with a TAKE home salary of Rs. 19,000 too there were car buyers!
Look at a case of a parent who has retired from a low paying job. For him a car was something that ONLY somebody 5 steps above him could afford. Or it was an honour to be given a car by the company. Well it was like that when he took up his first job in the 1980s.
Welcome bank financed cars – so literally anybody could afford it. Oh Really?
Well the parent has retired, so he has the money to make a down payment – FROM HIS RETIREMENT CORPUS. He has a house which he (bought for Rs. 1.3 lakhs) worth about Rs. 80 lakhs (feel good net worth!) and his children – one son (MBA of course!) earning about Rs. 4 lakhs and a daughter (MBA too!) earning about Rs. 3.8 L (parents add up the ctc I guess!) and the cash flow is a feel good cash flow.
So there is now a car in the house. Parents are beaming – because it is the first car in their chawl (well at least it was till 12 months back!), the children flaunt it among their friends. Picnics, parties, get together events are not complete without a mention -‘arre we could go …I can pick 4 of you…’
Am I cribbing? Heavens no.
Good for Hdfc bank, Tata Motors, Suzuki, ….sadly Hyundai is not listed in India…
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