What Factors Influence the Car Prices In India?

Chennai, July 16, 2014 (Newswire.com) - The purchasing is the power of people in the country has risen in the past few years; in spite of this, buying a car is out of reach of many. On the other hand, there is a large group of people who are not able to buy a car with the help of finance schemes. This discussion brings to mind a very pertinent question which is actually the title of this article.

Factors Influencing Car Prices In India

There are certain factors that affect the automobile industry as a whole, while there are some that influence the prices of only a few companies or type of vehicles.

1.     Economy – if the economy is in a good condition and there is a large demand for cars, then the prices will also increase. On the other hand, if the demand is less, then discounted prices will have to be offered to lure in customers. Now, with the economy in the background the demand for fleet cars for taxi services or police patrol cars may also rise and fall. In the latter example, there will be a few models that will be more affected than others.

2.      If a car dealer is shutting his business – there are large dealership chains across the country and due to several reasons, of which failing economy may be one of them, they may decide to shut their businesses and as a result of which, they will want to clear their stock at even highly discounted prices.