India Evolving as Global Exports Hub for Small Cars

Wednesday 07 May 2008, 00:00 AM by Satish

Indian auto market is booming each day. Nearly all major auto players have expansion plans designed for the Indian market. Moreover, the small car segment in India and the surrounding countries is the most lucrative one.

India is already an export hub for small cars for Suzuki. Similarly, Hyundai has also shifted its complete manufacturing base for small cars to India. It currently manufactures i10, Getz and Santro in India and has also made India as its exports hub.

Economies around India like those of Japan, Vietnam and China are also experiencing growth. Demand for small cars had not been much in China in the year 2007 but is expected to bounce back in the coming years. Moreover, sales of mini cars in Japan accounts for at least 1/3rd of the sales. Suzuki and Diahatsu are already the major players in the Japanese markets.

Currently India is one of the largest producers of the small cars in the world. Small car segment accounts for nearly 3/4th of the auto market in India. The exponential growth in this segment has coaxed major players like Nissan, Renault, Toyota, VW, etc to sit up and take notice. Apart from this Tata Nano has already been a show stealer. With the stage set, India is expected to witness more than dozen small or compact cars in the auto market.

India shall soon have more models like Skoda Fabia, Maruti A-Star, Maruti Splash, VW Up!, Bajaj small car and many more. Maruti Suzuki already dominates this market by holding 60% of the share for small cars in India.

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