Indian auto industry shifting on pricier side to woo Indian buyers

Several car makers in the Indian auto industry have come up with new ultra-competitive products in the market to woo the buyers. The move has been taken by the auto companies irrespective of the fact that the demand in passenger vehicle segment is witnessing a dip and their inventories are increasing. Heading the league of success, Maruti's first Life Utility Vehicle (LUV) Ertiga created a storm in the auto market as the model was economically priced and was featured with almost everything, which an Indian buyer looks before buying a Utility Vehicle (UV). At a base price of around Rs. 5.8 lacs, Ertiga seems to be a good vehicle in its segment to go for.

Following the bandwagon, the French auto maker, Renault, appeared in the limelight with its compact Sports Utility Vehicle (SUV) Duster, which was also placed on the pricier side, striking right chords with the sentiments of Indian buyers. The car has been offered against a consideration of around Rs. 7.1 lacs, which comes as a fair deal from the stables of Renault.

In order to taste the success, the largest UV maker of the country, Mahindra & Mahindra (M&M) introduced its mini SUV Quanto, which was perfectly timed as the festive season is just around the corner. Considering all the advance features packed within the new Quanto, industry experts believe that the price tag of Rs. 5.82 lacs has done justice with the Indian customers.

Maruti Ertiga has a seating capacity of five individuals, while the factory designed model of Renault Duster also has the same capacity; however individual can ask the dealer for fitments of two additional seats in the boot. On the other hand, Quanto boasts off company provided seven seats, which enable it to stand apart from the competition from the rest of two models.

However, it will be little dicey to comment upon whether Quanto will replicate the same story of success created by Ertiga as the latter was a great hit. From the abovementioned three developments, industry experts believe that the auto companies have generated compact SUV segment to pull away the potential buyers from the premium hatchback and entry-level sedan segments. These models are clearly stating that the Indian auto industry is becoming more and more competitive, forcing auto makers to introduce economical models than ever before.

The fact is same even with the premium car makers like Audi and Mercedes-Benz who are practising great stunts to enthral the Indian buyers by introducing price sensitive models. Audi earlier joined the bandwagon by launching its Q3 model, the compact SUV, at a price of around Rs. 26 lacs, while its country cousin has also climbed the ladder by recently introducing its B180 at a price tag of around Rs. 21 lacs.

With these moves, it seems that the car makers are in full swing to compel Indian buyers to go for new vehicles, placed in redefined segments like compact SUV and Sports Tourer, rather than looking for vehicles in conventional segments.