Car buying decisions in India are mostly driven by two major factors. One, how much fuel economy the vehicle would give, and second, what is the resale value of the car in the future? Any car maker who has decoded these two formulas can literally win over the entire car market. It is no surprise that Maruti Suzuki India has been maintaining over a 50% market share for many decades now and has among many high resale value cars in India. This is just the tip of the iceberg, many other factors such as ease of maintenance, robust service network, and longer car life, etc also contribute towards the higher resale value of a vehicle. Let us look at the top 5 car makers that have maintained a higher resale value throughout the years.
1. Maruti Suzuki
The venture between Suzuki and Maruti Udyog was started in 1983, and the rest is history. During the initial decade itself, the Maruti brand was having a strong 50% market share, which it still holds. One of the major reasons that the brand commands higher resale value is the legendary fuel economy along with two-wheeler-like maintenance. Maruti Suzuki cars are truly a ‘fill it, shut it and forget it’ experience. The service network is so dense that you will find a Maruti service center in the remotest area too. Another reason is that in the hatchback segment, Maruti has so many models to offer that it literally has a monopoly in that segment. The people’s trust in this brand is so high that it is not uncommon that some of their models are being sold in black to beat the waiting period.
2. Toyota
The trusted reliability and strong after-sale support that Toyota offers many high resale value cars in India and has given it a cult status in the MUV segment. The resale value is so insane that a 13-year-old Innova can be seen listed for a price up to 10 lakh. The cheap maintenance cost has played a major role here. Imagine paying a hatchback-like service cost for a Toyota Fortuner, anyone will agree for such convenience. The cars are built in such a manner that even after traveling north of 300000 km, the vehicles retain their basic functionality. With the popularity in the tourism sector, cars like Toyota Innova are used as a fixed deposit by many. The brand also believes in constantly improving its range based on customer reports, hence maintaining the trust factor.
3. Hyundai
When it was launched back in 1996, many had few expectations from this brand. It was believed that it cannot challenge the might of Maruti Suzuki. But it took everyone by surprise and now the brand has created a nice niche in the market. The brand holds a healthy 17% share in the market. Popular cars such as i20, Creta, etc from this brand have a huge resale value. The Creta is so popular these days that it can retain up to 87% of its value for initial 3 years. The main thing going on for this brand is that they offer unmatched features in their cars. Even the base models are decently loaded. Along with that, the Hyundai cars offer decent fuel economy and the maintenance cost is also low.
4. Mahindra
When it comes to tier 2 and rural areas, nothing can beat the mighty Mahindra. Their cars are so strong and rugged that they are a favorite among many. The Scorpio model, which was launched in 2003, can hold up to 75% of its value for initial 3 years. With their newer lineup such as XUV500 and TUV300, the brand has given affordable options for urban commuters that are decently loaded with features. The maintenance cost also remains low along with a strong service network. Another reason why Mahindra is popular is the utility factor of their vehicle. The Bolero lineup has so many sub-variants, which is the best choice of transport segment. Also, the patriotic factor comes in, we Indians like to associate ourselves with Indian-made products for that pride.
5. Honda
Honda is also an old player now, it entered India in 1996 with just one model but has become the king of the C segment sedans. No doubt due to fewer models on the lineup, the market share is just around 2%. But it has a loyal following among white-collar and bureaucratic people. The pride and prestige that is associated with this brand automatically raise the status symbol of a person. Another thing is that the maintenance cost of the Honda vehicle is very cheap. The basic service of Honda City cost around 5000 rs, amongst the lowest in the segment. Honda city commands over 80% of its value for an initial 3 year period.
Conclusion
No doubt that the Indian car market has grown leaps and bounds, but the sad part is that the whole buying process is still driven by two factors i.e fuel economy and resale value. It affects the high resale value cars in India market. With the level of internet penetration that we are witnessing in our country, it is high time that we divert the audience’s attention to main factors such as safety instead of fuel economy. There are many world-class cars with impeccable crash test results, but they fail because they do not offer either good fuel economy or a good resale value. It is time that we change our priority and give solid cars a chance.
