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      Manufacturers look at budget cars to drive sales

      CarTrade Editorial Team

      CarTrade Editorial Team

      The Indian car enthusiasts are infamous throughout the world for their obsession with no frills, affordable and mileage friendly models. Maruti Suzuki India Limited (MSIL), the country's largest passenger car manufacturer, is the most convincing example of that. Evidently, Maruti Suzuki stable has thrived with unparalleled sales of their low cost, value-for-money and basic carlines in the Indian auto market. The immense success and popularity of Maruti Suzuki witnessed amid domestic audience is popularising the trend of introducing no frills and low cost models among other multinational car makers of the country.

       

      Top auto makers resorting to low cost models to pull volumes
      Top auto makers resorting to low cost models to pull volumes
       

      Evidently, top global car makers namely Daimler, Renault, Nissan, Volkswagen are resorting to introducing affordable Indian market oriented models, so as to catch the imagination of domestic car enthusiasts. The companies have learnt that mostly low cost and value-for-money vehicles become best sellers and mass volume pullers in the country. Renault India Private Limited (RIPL), a completely owned subsidiary of French multinational auto major Renault SA, introduced its Duster model in India last year. Evidently, the Duster compact Sports Utility Vehicle is actually a product of Renault's low cost sub-brand Dacia. At present, Renault is in a joint venture partnership with Japanese multinational auto major- Nissan Motor Company in the country and the two companies share a manufacturing plant in Chennai as well.

      As per reports, Nissan is also working towards introducing products under its low cost Datsun brand, just like its French partner in the Indian auto market. Expressing his views on the possibility of Datsun cars in India, Toru Hasegawa, Corporate Vice President (VP), Africa, Middle East and India, Nissan Motor Co., was quoted as saying, “Datsun is a global brand, with local products. It is not necessary that global cars can succeed in all markets. For some markets, we need specific local products. This is where we believe Datsun brand will come to help us in India. Nearly 2,000 engineers are working in our Chennai design centre getting the India specific Datsun ready. It is also a myth that just a cheap car will sell in India. Datsun will be entry for a customer to get into our family as he moves to Nissan next and possibly Infiniti (the luxury car brand of Nissan).”

      Further, the Indian arm of Volkswagen, the well-appreciated German auto major, has also revealed intentions to soon begin developing a no frills and affordable product pertaining with the taste and liking of domestic audience. Toyota and Hyundai are also considering bringing their Daihatsu and Kia subsidiaries in the country. Daimler Commercial Vehicles already operates in Indian auto market as Bharat Benz, while General Motors offers models developed with its Chinese joint venture partner- SAIC Motor Corporation under Chevy badging.