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.
 

New Cars

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.
See More

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.
See More

New Cars in 2014

Mercedes Benz C Class

Mercedes Benz C Class

Rs. 40.9 lakhs
Ex-Showroom Price in Mumbai
The new-generation Mercedes-Benz C-Class finally launched in India in November 2014. Based on MRA (Mercedes Rear-wheel drive Architecture) platform, the 2015 Mercedes C-Class appears more like a ...
BMW M5

BMW M5

Rs. 101.5 lakhs
Ex-Showroom Price in Mumbai
BMW M5 represents a perfect amalgamation between a luxurious saloon and a powerful sports car. The stunning model is powered by an eight-cylinder M TwinPower Turbo engine that develops impressive ...
MINI Cooper

MINI Cooper D 5 Door

Rs. 35.2 lakhs
Ex-Showroom Price in Mumbai
BMW, the German automaker, launched the 2014 Mini Cooper hatchback in India, which was first unveiled at the company's Oxford, UK based plant. Offered in 3-door and 5-door versions, the new ...
MINI Cooper

MINI Cooper D 3 Door

Rs. 31.85 lakhs
Ex-Showroom Price in Mumbai
BMW, the German automaker, launched the 2014 Mini Cooper hatchback in India, which was first unveiled at the company's Oxford, UK based plant. Offered in 3-door and 5-door versions, the new ...
Rolls Royce Ghost Series II

Rolls Royce Ghost Series II

Rs. 450 - Rs 545 lakhs
Ex-Showroom Price in Mumbai
Rolls Royce has added one more premium model to its flamboyant Ghost line up. The Ghost Series II which gets host of new changes.Ghost Series II, an update with a range of innovative ...
Maruti Suzuki Alto K10

Maruti Suzuki Alto K10

Rs. 2.96 - Rs 3.8 lakhs
Ex-Showroom Price in Mumbai
Maruti Suzuki India has launched facelift variant of Alto K10 today sporting styling and mechanical upgrades. Rolled out in both petrol and CNG variants, new Alto K10 range is priced between Rs ...
Maruti Suzuki Swift

Maruti Suzuki Swift

Rs. 4.49 - Rs 7.28 lakhs
Ex-Showroom Price in Mumbai
2014 Maruti Suzuki Swift has been launched in India. The Maruti Swift facelift is priced at Rs. 4.41 lakh for the base petrol variant and Rs. 5.89 lakh for top-spec diesel model. Prices for ...
Mercedes Benz GLA Class

Mercedes Benz GLA Class GLA45 AMG

Rs. 69.6 lakhs
Ex-Showroom Price in Mumbai
Mercedes-Benz India GLA45AMG was launched on 27th October 2014. The GLA45AMG is offered in a 2-litre petrol engine. It is also claimed to be the most powerful 2L petrol engine ever to be installed ...
Fiat Avventura

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

Nissan Terrano XV D THP Premium Anniversary Edition

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 ...

Upcoming Cars in 2014 - 2015

BMW M4

New BMW M4

The BMW M4 is a fitting reply to the earlier M3 Coupe as the M4 packs in more fun than the legendary M3. Based on the 4 series, the M4 is a power packed sedan which offers more performance than ...
Expected: End 2014 ,  0 comments.
BMW M3

New BMW M3

The BMW M3 has been a performance car which many vouched for. It had exhilarating power and performed like a typical mean machine. This new M3 is a 3 series on steroids and with the new ...
Expected: End 2014 ,  0 comments.
Tata Nexon Concept

New Tata Nexon Concept

In a recent trend followed by the domestic and global car markets, each auto maker is utilising a pragmatic and futuristic approach in its innovations. One such fine example of efficiency and ...
Expected: Late 2015 ,  0 comments.
BMW i8

New BMW i8

Not much time has passed when the German auto major showcased its unique innovation of BMW i8 to the Indian audience. The car was featured at Auto Expo 2014 and was inaugurated by the legendary ...
Expected: Early 2015 ,  19 comments.
Mercedes Benz CLA

New Mercedes Benz CLA

P P.western P.cjk P.ctl A:link Introduction of Mercedes-Benz CLA Mercedes-Benz, a subsidiary of Germany-based auto manufacturer Daimler, offers a number of luxury cars, buses, coaches and ...
Expected: Early 2015 ,  0 comments.
Tata Bolt

New Tata Bolt

The concept of hatchbacks has always been appreciated by the domestic buyers chiefly due to their cost-effectiveness, compactness and efficiency of these cars. A number of global and Indian car ...
Expected: Early 2015 ,  0 comments.
Datsun Go

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: Early 2015 ,  0 comments.
Mahindra Quanto

New Mahindra Quanto

Mahindra was quick enough to enter the compact SUV bandwagon with the Quanto. Mahindra, the number one utility vehicle manufacturer in India has always offered varied products on different ...
Expected: Early 2015 ,  0 comments.
Hyundai Avante

New Hyundai Avante

The car market in India is all geared to experience the launch of some of the newest generation cars by some of the biggest car makers of the world. The focus is now upon the Hyundai Avante which ...
Expected: 2015 ,  26 comments.
Ford Focus

New Ford Focus

Overview of Ford Focus Ford Motor Company, one of the most prestigious US auto major, has been trying everything to establish a strong foothold in the Indian automobile market. After ...
Expected: Early 2015 ,  10 comments.

Auto News And Updates


India has always been a strong potential market for global automakers with every leading carmaker comparing against each other across segments in the country. Since last couple of years the sales for new cars have witnessed a constant
Read complete " Used car market grows steadily ..." article
November 25 , 2014

Luxury carmaker BMW has been one of the hot favorites in the country. Performance, comfort, style and reliability has been the brands unique characteristics across the globe. This time around to cheer its fan-base in India, BMW has
November 25 , 2014

There are a number of reasons why hatchbacks are more preferred than SUVs or sedans in India. Moreover, in cities, hatchbacks are the best bet for daily drivers. Honda City   The biggest reason for
November 25 , 2014

Finally, after months of speculation, Mercedes-Benz India has launched the much anticipated next generation C-Class in India. The new C-Class is priced at Rs. 40.90 Lakhs (Ex-showroom Delhi) for C200 CGI
November 25 , 2014

The demand patterns of Indian car buyers have undergone several changes in the recent past, especially the last two years. One indication of the same is the progress of new segments and models. The success of Honda Amaze has triggered
Read complete " Tata Zest AMT Vs Hyundai ..." article
November 25 , 2014
Top Button

Find New Cars

By Brand

Get complete details of new cars

By budget

Rs. 5 Lakhs to 10 Lakhs

Choose Cars to Compare
Click to select cars of your choice

Ask an Expert

Post your question and get the answer from our experts