Indian car market encompasses a tremendous scope for growth, which is one of the reasons it has become the focus of several companies. With so vast population, the number of opportunities on offer for car makers are incredibly high. India is a country comprising metropolitans, towns and rural areas, which automatically means that there is wide variety of vehicles being driven. In past three decades, the Indian car market has made terrific progress in terms of sales, number of auto companies and technology. The consumer situation in India has transformed drastically as cars have, now, become quite common unlike earlier times, when they were considered a luxury.
Several reasons have led to the transformation of Indian car market, making it one of the most prominent industries in the country. Over the years, income levels of people have increased and as a result, their standards of living have also improved. Simultaneously, the need of cars, understandably, grew along with the rise in social status. In the past two decades, the working class has become the focus of most automobile manufacturers operating in India. Possessing a vehicle has, in the modern day scenario, become a regularity for a family living in city. Also, purchasing new car is seen as a sign of progress a person has made economically.
A hatchback, typically, represents the consumer choice in India, which is influenced by factors like fuel efficiency, affordability and suitability to conditions. Success of hatchbacks can be seen in the reports and statistics prepared by the industry body, which have revealed that companies dominating the market rely heavily on this segment. Apart from the working class, there are several car enthusiasts in the country who have a strong economic position, thereby can afford to purchase luxury vehicles. The presence of rich class has created a demand for luxury cars across the country and subsequently, opened the doors for several internationally renowned car manufacturers.
Initially, there were limited companies operating in the India with some of them being based domestically. However, after the economic policy revised in 1991, foreign car makers started making their way into India to explore the kind of potential the market possessed. Another trend that has been going on for a while in India is the collaboration between a top international car brand and a domestically based auto firm. It has augured well for a number of firms and some of them are currently enjoying a dominant position in the country.
Foreign car makers have had a mixed run in India with some performing exceptionally well while the others failing to make much of an impact despite being present for a number of years. Now, there are certain factors that influence a foreign firm's performance in India. To begin with, it is a great benefit if the car maker is based in a country that has similarities with the Indian market, which helps in better understanding of the conditions for planning. This is a major reason why companies from Southeast Asian countries have been able to create a name for themselves in India.
With the advent of technology and superior mediums of research, companies have been able to analyse the kind of product line they should have in India. Broadly categorising, there would be two types of auto makers operating in the Indian car market. First are the ones that want to generate sales on a high level and establish their dominance. The other section would be companies that have a niche market and do not target masses. Firms falling in the first category always look to have a holistic approach, which includes aggressive advertising campaigns, extensive dealership network development and establishment of production facilities. Having a self owned production plant helps a company to reduce cost and thereby, price a newly launched vehicle aggressively. On the other hand, the second category of car makers have limited dealerships and expect their vehicles to sell themselves without the need of much advertising or promotion.
To put things in a nutshell, the Indian auto industry has been constantly progressing with almost all major car makers operating in the country. This has been the result of rising incomes of people and their demand for new cars. In fact, the past few years have seen a whole bevy of new vehicles from different segments being launched in India, a trend that is likely to continue for coming years. According to a recent report, companies have started making India their base for production, owing to low cost of labour. After manufacturing vehicles in India, firms are exporting them to other international markets, which is being seen as a positive sign by experts. In addition, some auto makers have plans of completely conceptualising, developing and manufacturing cars in India.
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Upcoming Cars in 2013 - 2014
|New Maruti Suzuki XA Alpha |
The XA Alpha concept Sports Utility Vehicle was introduced by India’s leading car maker Maruti Suzuki during the 2012 New Delhi Auto Expo held in January. With this vehicle, the company will ...
Expected: Early 2014 , 40 comments.
|New BMW X4 |
Bavarian Motor Works, known as BMW, is one of the top brands that deal with the manufacturing of premium cars and motorcycles. This auto company, founded in 1916, has wooed customers and car ...
Expected: early 2014 , 0 comments.
|New Mercedes Benz CLA |
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Expected: early 2014 , 0 comments.
|New Hyundai i10 facelift |
Hyundai Motor India Limited is a fully owned subsidiary of the South Korean automotive giant, Hyundai Motor Company. The company forayed in the Indian auto market in 1996 and since then it has ...
Expected: Mid 2014 , 0 comments.
|New Maruti Suzuki Swift |
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Expected: end 2014 , 26 comments.
|New Maruti Suzuki Cervo |
Latest update on Maruti Suzuki Cervo 4th June 2012 Maruti Suzuki Cervo, the much awaited compact hatchback will be launched in the festive season. The largest car manufacturer of India has ...
Expected: end 2014 , 695 comments.
|New Tata Nano |
Latest update on Tata Nano Diesel 4th June 2012 Tata Nano Diesel is one of the much awaited cars in the Indian auto market. It is anticipated that the car will be introduced in 2013 in the ...
Expected: end 2014 , 327 comments.
|New Volkswagen Tiguan |
The Volkswagen Tiguan is synonymous with power packed performance. Indeed, in its compact format it is a true performer with some of the best features rolled into one. While performance is one of ...
Expected: end 2014 , 12 comments.
Auto News And Updates
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