So, if someone put a new car on the market for $18,000 with the (lack) of features of the 1990 ford mustang, the poor reliability, louder interior noise, no bluetooth, dim/unsafe headlights, it wouldn’t sell. It wouldn’t sell because you can easily purchase a used 2015 Ford Mustang in good condition for this price. Approximately 0% of buyers would prefer a 1990 mustang to a 2015 mustang.
Cars have added an incredible amount of value staying at or near their inflation-adjusted prices in the last 30 years. wireless audio, navigation, safety features, performance / efficiency tradeoffs, reliability are all miles better.
Combine these features with very low interest rates and increased interest in financing, and actual prices are similar-to-better today on a monthly basis.
A new 5 liter mustang costs maybe like $36k right now. Average mortgage rate in 1990 was 10% (!). Assuming car loans were 12%, then a 5 year financing of a $9,500 car would have been $211 per month in 1990 dollars, or $422/month in today’s dollars. New mustangs can be leased for as little as $300/month, purchased for $400-650/month.
So, these prices are not wildly out of line with 1990s era prices. And, maintenance costs are vastly lower as well. All that to say, Tata motors is doing less well than tesla, toyota or ford, and I think that’s likely to continue.