Booming Indian automobile sector is in process to getting acquainted with numerous low cost small cars from top manufacturers. The reason behind this is the swiftly growing economy that is enabling majority of the middle class Indians to easily spend on small cars.
Maruti Suzuki India Ltd. that boasts of selling one out of two cars is currently ruling the auto market. The models offered by the company also account for the maximum number of search inquiries among internet surfers, regarding forthcoming new models. Maruti Alto K10 small car that was introduced last year is an advanced variant of Alto, which was in vogue amongst Internet users. Maruti left behind Ferrari and Maserati, which were brought forward at the same time.
Between January 2010 and May 2011, 25 new car models were ushered in India, out of which seven small cars made it to the bulletin of the 10 most searched car models, according to Google India search data. Amongst all passenger vehicles sold in India, more than two-third are compact cars. The survey also revealed that Indian Internet users want to search for mid-level cars that cost between Rs. 2 lacs and 6 lacs.
Maruti Alto has been the best selling small car model in India. The Suzuki Motor Corp. unit on an average sells 30,000 Alto and Alto K10s in a month, as compared to Hyundai Motor Co.’s i10, for which the monthly sales number is around 14,000 units. In India, Maruti is also the most searched car firm, followed by Honda and Hyundai.
The small car business experienced a boon due to Tata, which launched Tata Nano, the world's cheapest car. After seeing the success of Tata Nano, other prominent Indian manufacturers like Hyundai and Maruti Suzuki are also concentrating on designing and manufacturing vehicles that would cost around Rs. 2 lacs. Besides, Tata Motors too is focussing on increasing the sales of Nano and is planning to produce a car that would cost between Nano and Indica. Likewise, Hyundai is manufacturing a model which will be one step ahead of Nano and more affordable than its own Santro.
The reason behind the increasing hype towards small cars can be the prolonged inflation in India. The rising cost of fuels has also contributed heavily in inclining customers towards diesel-driven vehicles. Indian Government subsidises diesel because most of the goods are transported by diesel-powered trucks. Therefore, automobile companies are launching both petrol as well diesel versions of the cars in the small car category.
The sales of small cars are attracting more and more customers in India, which is why models like Maruti Alto K10, Ford Figo and Maruti Swift have locked horns in the race to become the No.1 small car in India. Moreover, Maruti Suzuki is contemplating an 800 cc car to take the place of its precious popular Maruti 800, which is on its way out. However, Ford, Renault and GM are planning to launch premium cars and are not thinking of venturing into the small car arena.
