Just few months back, India overtook Brazil as the 6th largest passenger vehicle manufacturer in the world. This proves the fact that the Indian automobile industry is growing at a fast pace. India is a growing market for hatchbacks, sedans, SUVs (sports utility vehicle), MUVs (Multi utility vehicle), crossovers and MPVs (Multi purpose vehicle). Among these, small cars have emerged as a clear winner. In fact, the country has become the leading centre in producing small cars.
Every automobile company in India primarily focuses on manufacturing small cars. Maruti Suzuki, Honda, Hyundai, Tata Motors and General Motors are the top companies that are leaders in this segment. Tata Motors achieved instant success when they introduced world’s cheapest car, Nano, in the year 2009.
Financial Times stated, “If ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of home grown engineering, the Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity."
Majority of India’s population belong to middle class and when it comes to purchasing cars, they look for affordable vehicles. Studies show that if an individual belonging to middle class wants to own a car then he can easily shell out Rs. 1 Lac to Rs. 1.50 Lacs. Thus, while buying a car, price tag becomes a primary factor.
Nano by Tata Motors has given fierce competition to Maruti 800 and Alto that were counted amongst the most successful models in India. The automobile companies across India have been trying to introduce similar small car models at lower cost to attract potential buyers.
Bajaj, the fourth largest two- and three- wheeler manufacturer in the world came up with its own small car, RE 60 at the recent Delhi Auto Expo. Likewise, Hyundai and Honda have geared up to manufacture more small cars at a competitive price. Though pricing is the prime factor, performance and style also matter. That is why Maruti Suzuki Swift, Chevrolet Beat, Hyundai i10, Volkswagen Polo and Hyundai EON have attracted majority of Indian buyers in recent times.
Taking into consideration the car sales figures of the last ten years as well as current scenario, it becomes obvious that small cars would continue to dominate the automobile sector.
