Tata Nano affects used car prices in India

Tata NanoAccording to a report by Marinews, it seems that the impending launch of the Tata Nano has had a bad effect on the used car market in India, with used car sales dipping between 15 to 30 percent because buyers are waiting for the Tata Nano to be launched before deciding whether to buy a Nano or a used car.

Even used car values are affected, with cars like a 6-year old Maruti 800 dipping in value by 30% from 110,000 rupees to 75,000 rupees and a 5-year old Hyundai Santro’s 200,000 rupee value down to 165,000 rupees. Values of small cars that are usually purchased by budget-concerned buyers are generally hit the most, because of the fear of an impending rise in fuel prices. Some of these buyers would have to go back to bikes.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • azrai (Member) on May 30, 2008 at 7:03 am

    The same can goes in Malaysia.There is a rumour in after June 08, they will be cut in insurance, road tax, and other tax on vehicle with low interest rate to justify the G move to reduced the fuel subsidy. Wait n see?

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  • 4G63T DSM (Member) on May 30, 2008 at 7:28 am

    As per any price adjustmnets, they will impact the 2nd hand markets. There is no way you can avoid it.

    I do pity people that have bought new cars, and have the depreciation hit them harder than their payments can catch up.

    Like many car owners, we were in the same situation 2 years back when there was a tax adjustment for cars. Our Accord lost 10k in value literaly overnight. However, its not likely we are trading in the Accord any time soon, so it is something we can ignore for now.

    However lower car duties will benefit everyone, especially for lower income earners.If you buy a “normal and sensible” 40K range car (ie, base myvi, saga, even a Kelisa) you’d be stuck paying a good portion of your PDI on your car for at least 5 years.

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  • jolly_idiot (Member) on May 30, 2008 at 9:22 am

    If this car comes to Malaysia shore. Will it first to KILL Proton & Perodua? Cheap vs cheaper vs cheapest.

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  • rexis (Member) on May 30, 2008 at 11:18 am

    P2 should come out with some kancil kicit..

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  • Roti Naan (Member) on May 30, 2008 at 11:53 am

    Tata Nano, please come to Malaysia!! –laying out the red carpet.—

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  • dr_carz (Member) on May 30, 2008 at 12:06 pm

    very dood competition!.

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  • mystvearn (Member) on May 30, 2008 at 9:30 pm

    hmm, will not sell that well in Malaysia. Malaysians expect to pay less but also get quality, not barebones. It will not be that cheap either. The gov will place all kinds of duties on it making it slightly below Kancil. Of course no one will buy Nano then

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  • charles27 (Member) on May 31, 2008 at 12:09 am

    haiya… big changes coming … but not for malaysia laaa…
    unless AP king all dead.

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  • mokkf82 (Member) on May 31, 2008 at 12:16 am

    When the petroleum rise from 120 per barrel to 200 per barrel. This would be a car to consider. Or maybe there would not be any vehicle left on that time, cause ppl will just go for bike or bicycle then. hehe

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  • osh_kosh (Member) on May 31, 2008 at 12:42 am

    it would be interesting to see how our local market respond IF this thing land in our shore… but like mystvearn said, “it will not be that cheap”… so, agreed.. can’t sell

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  • s (Member) on Jun 01, 2008 at 10:29 am

    i oso agree with mystvearn, i think the nano price will not same with price in india…the tax from goverment will make the price higher, so dont expect too much for the cheper nano..

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