Car price inflation may moderate 4.5% over 5 years as tech improves

While average selling prices rose 7.6% between 2019 and 2024 due to premiumisation and regulation costs, they are expected to rise more moderately at 4.5% CAGR till 2029

Car prices are likely to moderate over five years on the back of improved manufacturing and technology after rising sharply since 2019, according to analysts.

 

The average selling price (ASP) of automobiles increased 41 per cent between 2019 and 2024 (₹8.07 lakh to ₹11.64 lakh), according to data from market research firm Jato Dynamics. By 2029, ASP is likely to be ₹14.72 lakh. Prices have increased at a compound annual growth rate of 5.6 per cent since 2019 and are expected to clock 4.5 per cent CAGR over 2026 through 2029. 

If one considers the period between 2019 and 2024,