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 2014 - 2015
|New Fiat Abarth 500 |
Fiat Abarth 500 was showcased at the recently concluded Auto Expo and was gained plaudits for its unique styling. This compact hatchback is one of the most anticipated launches in India and is ...
Expected: End of 2014 , 0 comments.
|New Datsun Go |
The Japanese auto maker Nissan seems all set to introduce the second model of its low-cost brand Datsun, named Go+, in the Indian auto market. The company has already marked its advent in the ...
Expected: Late-2014 , 0 comments.
|New Maruti Suzuki SX4 S Cross |
In the past few months, the Indian auto market has witnessed a steep rise in the demands of compact Sports Utility Vehicles (SUVs). Almost all the global and domestic car manufacturers present in ...
Expected: Late 2014 or Early 2015 , 0 comments.
|New Chevrolet Volt |
The all new Chevrolet Volt from the house of General Motors is a promising new generation hybrid car. Chevrolet has no immediate plans to bring the model to India this year but the model is ...
Expected: early 2014 , 15 comments.
|New Renault Duster |
Renault India Pvt. Ltd. (RIPL), a subsidiary of the French auto maker Renault S.A., established in 1899, stepped into the Indian auto market with the launch of Renault Logan in 2007. Renault ...
Expected: Early 2014 , 0 comments.
|New Peugeot 207 |
Peugeot 207, a replacement model of the outgoing Peugeot 206, will be another addition to the B+ hatchback segment of the Indian market. The hatchback 207 was launched initially in France, Spain ...
Expected: early 2014 , 3 comments.
|New Chevrolet Orlando |
Chevrolet, a wholly owned subsidiary of General Motors Company (GM), is one of the most acknowledged car markers across the world. Known as 'Chevy', this automobile giant is well known for ...
Expected: Early 2014 , 29 comments.
|New Tata Indica Vista |
Tata Motors Limited, one of the most prominent car makers of India, is working on its electrically driven compact car, Tata Indica Vista Electric. The concept model has already been showcased at ...
Expected: Early 2014 , 38 comments.
|New Land Rover Defender |
Land Rover, owned by Tata Motors Limited, is one of the most eminent sports utility manufacturers across the world. The British automaker, specialising in production of four-wheel-drive vehicles, ...
Expected: Early 2014 , 3 comments.
|New Chevrolet Lumina |
Chevrolet is one of the noted names in car making industry, which has been in the business for around a century now. The illustrious automaker produces a wide array of subcompact cars to ...
Expected: Early 2014 , 1 comments.
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