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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New Cars By Body Style

The Indian car market, just like the country's population, is huge, diverse and totally dynamic. Therefore, consumer choices in terms of vehicle type in India vary drastically, starting from a compact low-priced car and ending at top notch luxury model. However, over the years, certain buying patterns have been spotted in India, wherein people have an affinity towards particular segments. The hatchback segment is the most popular segment of the Indian auto market due to a number of reasons. A hatchback, which is said to be compact, fuel efficient, affordable and ideal for Indian road conditions, totally represents what a buyer in the country looks for in their car. For this vary reason, companies manufacturing hatchbacks have dominated the passenger car market in India.

Sedans, usually associated with luxury, also have a decent market in India with a number of them enjoying great success. Mostly driven in cities, sedans come in different types, ranging from compact to top class luxury models. Along with, the Sports Utility Vehicle (SUV) segment, for a number of reasons, has been able to carve a niche for itself in the Indian car market. SUVs are comfortable, powerful, spacious and have a commanding road presence. In addition, they have the ability to perform well in unfavourable terrains and weather conditions. Apart from this, owning an SUV is a perceived symbol of a person's status, especially in a country where there is a high level of economic disparity.

A compact SUV renders the performance of a utility vehicle and provides the luxury of a sedan along with being suitable for driving in city traffic. Notably, a few compact SUVs have also managed to shape a tremendous comeback for their respective manufacturers. Coming to the van and minivan segment, it has not been able to make much name in India with most of them being used for commercial purposes. Pricing can be stated as the biggest reason why the this segment has not been able to do well in auto space. Additionally, the minivans available in the country are unable to appeal customers in terms of appearance as well.
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New Cars By Fuel Type

With recent upsurge in fuel prices, car makers in India are now resorting to use available fuel options to boost their sales. In a fast expanding auto market like India, which is currently going through a repressive phase, the competition is getting tougher day by day. As a result, major auto makers are devising new strategies with an aim to counter the low sales. In India, companies are offering cars in different fuel options like diesel, petrol and CNG/LPG in order to cope up with the changing consumer sentiment.

Petrol cars may have more refined engines than diesel ones, but major demerit of the former has been its lower fuel efficiency as petrol burns faster than diesel. However, petrol cars are known for running at higher speeds than diesel models, which is mainly because of its lighter engines. In a country like India where fuel prices are surging at a high speed, the demand for petrol cars is falling day by day with car buyers now turning towards alternative fuel options. Even the luxury car segment has bore the brunt of price rise with major companies roping in diesel variants to cope up with the market demand.

With higher mileage and a powerful engine performance, diesel cars have taken the centre stage in India in the recent past. With the continuous surge in petrol prices, the Indian market is flooded with several diesel models. Although diesel cars offer economical mileage, they are more costly as compared to petrol models.

An alternative to traditional fuel options, CNG and LPG cars have performed quite well in the Indian car market with many buyers opting for these power sources. Being very economical and cheapest means for running a vehicle, these fuel options are much favoured by the middle-class section of society.
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Petrol Cars
Diesel Cars
CNG/LPG Cars

New Cars in 2014

Fiat Avventura
Rs. 5.99 - Rs 8.17 lakhs
Ex-Showroom Price in Mumbai
The Fiat Avventura crossover is available in both petrol and diesel guise. The petrol version of the car is powered by a 1.4-litre ‘FIRE’ engine that is capable of producing a top ...
Nissan Terrano
Rs. 13.01 lakhs
Ex-Showroom Price in Mumbai
Nissan has launched Terrano Anniversary Edition to celebrate the success of Terrano SUV completing a year in India. One can book Nissan Terrano Anniversary edition only on Nissan India’s ...
Nissan Terrano
Rs. 13.32 lakhs
Ex-Showroom Price in Mumbai
Nissan has launched Terrano Anniversary Edition to celebrate the success of Terrano SUV completing a year in India. One can book Nissan Terrano Anniversary edition only on Nissan India’s ...
Maruti Suzuki Ciaz
Rs. 7.46 - Rs 10.37 lakhs
Ex-Showroom Price in Mumbai
Maruti Suzuki Ciaz is a perfect product for those looking at a comfortable and spacious car, which is budget friendly, well equipped and easy to drive. If you are an enthusiast, the Ciaz is not a ...
Mercedes Benz GLA Class
Rs. 32.75 - Rs 36.9 lakhs
Ex-Showroom Price in Mumbai
The new Mercedes GLA–Class is an absolutely stunning SUV with a perfect balance of performance, ride quality and handling. Loaded with a plenty of standard equipments and features, ...
Renault Duster
Rs. 12.99 lakhs
Ex-Showroom Price in Mumbai
Renault, the French auto giant launched its much-awaited SUV, Renault Duster, in India on 4th July, 2012. Post its launch in the country, the model won 'The Autobest 2011' award for the ...
Renault Duster
Rs. 11.87 lakhs
Ex-Showroom Price in Mumbai
Renault, the French auto giant launched its much-awaited SUV, Renault Duster, in India on 4th July, 2012. Post its launch in the country, the model won 'The Autobest 2011' award for the ...
Jaguar XJ L
Rs. 93.24 lakhs
Ex-Showroom Price in Mumbai
Jaguar XJ is the four-door saloon, which is decorated with swept-back Xenon light clusters and sweeping roofline. The sports coupe body is justified by the rigid looking manly wheels and sculpted ...
Tata Zest
Rs. 4.84 - Rs 7.31 lakhs
Ex-Showroom Price in Mumbai
The Tata Zest compact sedan is clearly a winner in its league. This model is equipped with a powerful 1.2-litre Revotron petrol engine and the tried & trusted 1.3-litre multi-jet diesel ...
Hyundai Elite i20
Rs. 5.12 - Rs 8.04 lakhs
Ex-Showroom Price in Mumbai
The all new Elite i20 is a fun to drive hatchback. Its new sporty and bold look is quite appealing. The interior is rich and impressive. It has plenty of equipment and good rear seat space. There ...

Upcoming Cars in 2014 - 2015

Fiat Abarth 500New 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.
Datsun GoNew 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.
Maruti Suzuki SX4 S CrossNew 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.
Chevrolet VoltNew 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.
Renault DusterNew 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.
Peugeot 207New 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.
Chevrolet OrlandoNew 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.
Tata Indica VistaNew 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.
Land Rover DefenderNew 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.
Chevrolet LuminaNew 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.

Auto News And Updates


American carmaker Ford has been working in every possible way to make cars more safer for everyday commute. Ford has reportedly been working on developing a driver seat that can detect a heart attack. The driver seat shall feature six
Read complete " Ford working on driver car ..." article
October 21 , 2014

Apart from global popularity of American carmaker Chevrolet, the brand has also been a strong name in the Indian automotive industry. The Beat hatchback from Chevrolet has been well known as a feature loaded stylish tall boy hatchback
Read complete " Chevrolet Beat - Reasons why ..." article
October 21 , 2014

Fiat Avventura has been one of the anticipated vehicle from Fiat for the Indian market. The all new Fiat Avventura has finally been launched in the Indian market in two petrol and three diesel trims. The new Fiat Avventura is available
Read complete " The new Fiat Avventura launched ..." article
October 21 , 2014

Tata Motors has been a strong Indian brand in the commercial vehicle segment. In passenger vehicles segment, the Zest sedan from Tata Motors has been ruling the roost. Selected trims of Zest sedan has received the innovative and easy to
Read complete " Post cars, Tata Motors now ..." article
October 21 , 2014

Maruti Suzuki, India's biggest carmaker by sales has been asked to pay an extra excise duty of Rs. 150 crore by the tax tribunal. The Customs Excise and Service Tax Appellate Tribunal (CESTAT) gave the organization time extending
October 21 , 2014
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