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
Petrol Cars
Diesel Cars
CNG/LPG Cars

New Cars in 2012 - 13

A4
Rs. 27.69 - Rs 54.37 lakhs
Ex-Showroom Price in Mumbai
Audi A4 is a compact executive car, designed and engineered on Volkswagen's B platform. The fourth-generation model has an advanced layout comprising longitudinally oriented engine at the ...
1 Series
Rs. 21.96 - Rs 33.25 lakhs
Ex-Showroom Price in Mumbai
BMW 1 series is the first offering of the German automaker BMW in the hatchback segment. These cars range from a 3-door hatchback to a convertible. The 1 series cars were introduced ...
Enjoy
Rs. 5.53 - Rs 8.68 lakhs
Ex-Showroom Price in Mumbai
The Chevrolet Enjoy is the latest Multi Utility Vehicle (MUV) offering by General Motors India. It can seat 7-8 passengers comfortably and is available in both diesel and petrol variants. Engines ...
Sail
Rs. 4.36 - Rs 8.08 lakhs
Ex-Showroom Price in Mumbai
Chevrolet Sail is a car with modish looks, competitive pricing and reliable engine performance being its biggest plus points. This entry level sedan remains among the best offerings in its class ...
Force Gurkha
Rs. 6.39 - Rs 8.69 lakhs
Ex-Showroom Price in Mumbai
Force Motors, the critically acclaimed Indian commercial and utility vehicle manufacturer, has introduced its true blood Gurkha Sports Utility Vehicle (SUV) in the domestic passenger car market. ...
EcoSport
Rs. 0.4 - Rs 10.05 lakhs
Ex-Showroom Price in Mumbai
The 2013 Ford EcoSport boasts of best proportions amongst compact SUV models available in the market. The overall dimensions of the new Ford are liberal that enable EcoSport to offer ample ...
Amaze
Rs. 5 - Rs 8.08 lakhs
Ex-Showroom Price in Mumbai
The Honda Amaze entry level sedan scores some great points in terms of engine specifications, interior styling, aesthetic looks and value-for-money quotient. For instance, the Amaze offers a fresh ...
Grand i10
Rs. 4.25 - Rs 6.72 lakhs
Ex-Showroom Price in Mumbai
In a move that surprised many people in the auto market, Hyundai India is gearing up to launch the Grand i10 hatchback, which will be slotted between the current generation i10 and i20. The ...
XUV500
Rs. 10.61 - Rs 14.98 lakhs
Ex-Showroom Price in Mumbai
Mahindra XUV500 is a powerful SUV, which has bagged many awards since its launch. The SUV was awarded Car of the Year, SUV of the Year and Viewers Choice Car of the Year. The XUV500 has a ...
e2o
Rs. 5.95 - Rs 7.72 lakhs
Ex-Showroom Price in Mumbai
The Reva e2o is a revolutionary electric car launched by Mahindra & Mahindra. For a travel requirement of 40 km per day, the car needs to be charged just once in 2 days. The futuristic looking ...
Alto 800
Rs. 2.24 - Rs 3.93 lakhs
Ex-Showroom Price in Mumbai
Maruti Suzuki Alto 800 happens to be a replacement model for the iconic Maruti 800 city car. The cute Alto 800 flaunts a coming-of-age character and looks fresh with its neat curves and designing ...
Stingray
Rs. 2.24 - Rs 5.04 lakhs
Ex-Showroom Price in Mumbai
The Indian version of Stingray gets the same engine that is currently provided in the current generation WagonR model. The new model will has the same 1-litre 3-cylinder K-series petrol engine, ...
Swift
Rs. 2.24 - Rs 7.32 lakhs
Ex-Showroom Price in Mumbai
Maruti Suzuki Swift has been introduced in India in 2005 in the hatchback segment of the Indian Market. Available in petrol and diesel variants, Swift offers higher mileage. Sporty looks and ...
A Class
Rs. 22.66 - Rs 28.81 lakhs
Ex-Showroom Price in Mumbai
The Mercedes-Benz A-Class in India is the most affordable 'Three Pointed Star' model available in the domestic luxury car market. Buoyed by the vehicle's success in Europe, the German ...
Terrano
Rs. 9.47 - Rs 13.33 lakhs
Ex-Showroom Price in Mumbai
The latest offering from Nissan has received a good response till now in the Indian car market as consumers are praising the car for its power packed engine performance and advanced set of ...
Duster
Rs. 7.68 - Rs 12.55 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 ...
Octavia
Rs. 13.69 - Rs 20.1 lakhs
Ex-Showroom Price in Mumbai
The Skoda Octavia is a mid-size sedan that launched Czech automaker Skoda Auto in India. In European markets, Skoda Octavia is available in different body styles, which include five-door liftback ...
Cross Polo
Rs. 7.75 - Rs 7.98 lakhs
Ex-Showroom Price in Mumbai
The Volkswagen Cross Polo is equipped with a 3-cylinder diesel engine, which has a displacement of 1199 cc. The 1.2-litre TDI engine of Cross Polo is mated to a 5-speed manual gearbox, which ...
Upcoming Cars
Maruti Suzuki XA AlphaNew 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.
Honda BrioNew Honda Brio
Honda Cars India Limited, a subsidiary of Japanese auto maker, is a renowned name in the Indian car market. The company manufacturers passengers vehicles in India and has been appreciated by ...
Expected: Early 2014 ,  0 comments.
Mercedes Benz CLANew 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 2014 ,  0 comments.
Hyundai i10 faceliftNew 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.
Maruti Suzuki SwiftNew Maruti Suzuki Swift
One of Asia's leading car makers, Suzuki Motor Corporation, has been conventional in approach by rolling out fuel efficient cars in various segments. In the quest to rebuild its brand, Suzuki ...
Expected: end 2014 ,  26 comments.
Maruti Suzuki CervoNew 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.
Tata NanoNew 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.
Volkswagen TiguanNew 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


Ford has unveiled the new Everest concept at the 2014 Beijing International Motor Show. The Everest will be the new Endeavour for India and is expected to be launched by 2015-2016. New Endeavour has been caught on lens numerous times in
April 21 , 2014

Second spot held by Maruti Suzuki in terms of car exports has now been taken over by the Japanese car-maker Nissan. As per a recent report, Nissan has noted about 17% increase in shipments during the fiscal year 2013-14. On the other
Read complete " Nissan claims the second spot ..." article
April 21 , 2014

Japanese car-maker Toyota had been entangled in bitter rift with its union workers for nearly more than a month now. The issue over hike in pay was resolved after a meeting that was held between the labor groups and a local government
April 21 , 2014

The CBZ line of power-bikes from Hero MotoCorp had been present in the Indian market for over a decade now. The India's largest bike-maker had created quite a quite a buzz on the Twitter networking platform hinting a possible launch
Read complete " Hero MotoCorp launches new CBZ ..." article
April 21 , 2014

2014 Beijing International Motor Show witnessed global unveiling of Suzuki’s Alivio concept, a mid-sized sedan from the stables of Japanese auto maker. Interestingly this is the same vehicle which was exhibited at the 2014 Auto
Read complete " Suzuki Alivio Concept aka Ciaz ..." article
April 21 , 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