Small Car Market

Topics: Suzuki, Renault, Opel Pages: 2 (649 words) Published: November 4, 2010
Rising incomes, better financing for vehicles and improved roads are the combined drivers for strong growth of the automotive sector India. In the fiscal year 2006-07, the domestic passenger car market grew up by 20 percent, making India one of the fastest growing passenger car markets in the world in absolute terms. The introduction of the low-cost small car concept Tata Nano has generated much hype and generated discussion on the emergence of a burgeoning global low-cost small car market. This study conducts a comprehensive evaluation of India’s small car automobile industry and analyzes its role as potential lead market for the low-cost small car concept. India is likely to evolve into a global hub for small-car manufacturing. Currently, India is one of the largest producers of small cars with the small car segment accounting for about three-fourths of the Indian car market. The fast-growing small-car market has encouraged several global auto leaders like Renault, Nissan, Toyota, and Honda to announced plans for launch of small cars in India. Maruti Suzuki India, largest passenger car manufacturer in India, has more than sixty percent share of the domestic small-car segment. History of Indian Auto Market:-

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. The first car ran on India's roads in 1897. Till the 1930s, cars were imported directly. Embryonic automotive industry emerged in...
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