The year 2020 began on a dismal note for many industries, with sales figures plummeting as the pandemic surged through the year. The car manufacturers also registered a sharp drop in sales in the middle of the year. According to data by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicles witnessed a 49.6%decline in domestic sales in June 2020 compared with the same period last year. However, surprisingly, most companies ended the year on a positive note. Passenger vehicle sales rose 13.59% in December due to the pent-up demand, according to SIAM.
While Maruti Suzuki India registered a growth of 14.6% year-on-year in December, Hyundai posted its highest ever sales for the month at 25%, Tata Motors saw an 84% surge, and Mahindra & Mahindra saw a rise of 3% in passenger vehicle sales. Buoyed by the numbers and anticipating recovery in 2021, even luxury car companies are optimistic, with the BMW group predicting 25-30%growth in 2021, even as Mercedez Benz expects to double its sales in three years.
Taking the cue from sales figures, most car companies have lined up launches for 2021. Many of these were scheducled to come out last year but were delayed due to the pandemic. So, if you did not buy a car in the festive season last year, and are planning to pick one this year, you will have plenty of choice. Among those expected to bring out new or overhauled cars are Maruti (Alto, Celerio), Renault (Kiger), Tata (HBX, Safari), Mahindra (Scorpio, XUV500), Skoda (Kushaq, Kodiaq), Volkswagen (Vento, Taigun) Citroen (C5 Aircross), and Jeep (Compass).
To help you in identifying the car of your choice, ET Wealth, in collaboration with Cardekho.com, brings to you some of the vehicles expected to be launched this year. For your ease, we have categorised five of the top choices in three price bands: below Rs 7 lakh, between Rs 7 lakh and Rs 15 lakh, and between Rs 15 lakh and Rs 40 lakh.
We shall tell you what to expect in each vehicle, whether it’s the design, engine power or specifications. In addition, we shall provide the approximate resale value after three years, the monthly running cost that you are likely to bear, and the loan EMI if you are planning to finance the vehicle from a bank. However, since the vehicles have not been launched yet, the figures are based on expected prices. So, while you may need to recalculate when the car launches, for now you will an idea about the likely costs you will incur.
Though you may not be able to snag big discounts in the near future, there may be some offers around the festive season at the end of the year when some cars like Skoda Rapid and Volkswagen Vento are scheduled to be out. If, however, you have the car’s resale value in mind, it is a good idea to buy at the beginning of the new year so that you get a registration for 2022 instead of 2021. This will stretch the value of the car if you were to sell it in a few years.
Also, remember that it is better to buy a car without financing as it is a depreciating asset, which means the vehicle’s value will not appreciate with time. Besides, you will be paying interest on the loan which is not tax-deductible for salaried taxpayers. So, plan your purchase in advance and save for it in order to circumvent a loan. This may be crucial for those in sectors that may have been badly hit by the pandemic and are likely to suffer a salary cut or a job loss. It may be better for such people to avoid loans or debt of any kind at this juncture.
Another important thing to calculate before you buy a car is the actual cost of owning it. If you use the car infrequently, it might make more sense to hire one when you need it. If, on the other hand, you need to travel large distances for work every day, it might be more economical to buy one, especially if you plan to retain it for more than 5-6 years. You will also need to keep in mind the current increased price of petrol, which is around Rs 85 per litre in Delhi, with diesel at around Rs 75 per litre.
To calculate the actual cost of owning a car, you will not only need to include the running cost based on the car’s mileage and fuel prices, but also the loan EMI along with the interest component. Other factors to be considered are the annual insurance premium, registration cost and taxes, annual servicing and maintenance costs, parking and cleaning costs, and miscellaneous other charges. Another big factor you need to consider is whether you will drive the vehicle yourself or be driven by a chauffeur, since the latter can significantly escalate the cost of the car. Compare this with the cost of a cab, especially if you travel during peak hours and live in a metro or tier 1 city.
If, after all financial considerations, you have decided to go ahead and buy a car, go through the following pages to make the right choice depending on your budget, need and taste.
Best cars under Rs 7 lakh to buy in 2021
Best cars between Rs 7-15 lakh to buy in 2021
Best cars between Rs 15-40 lakh to buy in 2021
