Mercedes Benz v SIP’s

Well, Santosh Iyer, the sales and marketing head of Mercedes Benz India says that the SIP (Systematic Investment Plans) Indians are making is a roadblock for the sales of luxury cars and if Indians stop their SIPs, the sales of luxury cars will improve, That is a very bizarre statement indeed, Santosh Iyer goes on say that he’s told his team that if they’re able break the cycle of SIPs, then exponential growth is given.
Obviously after these statements the internet had a field day and it has sparked am interesting yet hilarious debate among people, some say there is merit in his statement and some have shunned it totally. The managing director of Kotak AMC, Nilesh Shah held an opposing opinion and said in favour of SIPs, u201cAt Rs 50,000 EMI, it is not possible to buy a luxury car. At Rs 50,000 SIP for a reasonable time, it is possible to buy a luxury car. SIPs,u201d  Well this definitely is one of highlights of the financial world but let us discuss how strong is the SIP trend in India and is it really at such a huge proportion? Most definitely the SIP trend is catching on and it has been strong throughout, although the numbers coming in now isn’t as significant as during the bull run but there is a clear upward trajectory,  In the month of October alone, the MF industry saw an investment influx of over Rs. 13,000 Cr.  Now let us do a fun activity; let’s calculate how long will it take for you to buy a Mercedes Benz car with an SIP of Rs. 50,000The price for an Mercedes C-Class is Rs. 55 lakhs and including the registration charges and taxes it will cost around Rs. 64 lakhs, If you do an SIP of Rs. 50,000/ month assuming an average rate of return to be 12%, you can buy a brand new Mercedes C-Class in 7 years,  Considering the inflation, you need to invest Rs. 70,000/ month if you want to buy the same car in 7 years. Well you can most definitely have a goal of buying your dream car in the future and for that you also need to know how should you go about and set goals for yourself, Comment your views below.