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Small Car Favouritism in India

These days’ small cars are gaining huge attention by consumers in India. The entry of various small cars in the recent years witnesses the flourishing small car market. Various factors have catalyzed in pushing the segment popularity. The rise in the fuel price is one such reason. As these cars are affordable and fuel efficient, they easily lure the middle class population of the country.

Presently, the market is flooding with small cars like Tata Indica, Maruti Suzuki Alto, Maruti Suzuki Wagan R, Hyundai Santro Xing, Hyundai Santro i10, Chevrolet Spark and more. The small car segment is the most competitive car segment currently in India. The car manufacturers launch new models on regular basis to surpass each other and capture the Indian market.

Tata Motors cheapest car, the Nano, expected to cost Rs 1 lakh has created a sensation the car industry with its debut in the auto expo 2008. The car is designated as the cheapest car in the world. Many global auto manufacturers are also planning to enter the small car market segments. The coming year will witness a flourishing growth in the small car sectors with the intrusion of auto majors like the Fiat, Ford, General Motors, Honda, Skoda, and Volkswagen.

The car industry at present is in the way of investing over Rs 70,000 crore in India and 65% of which is aimed towards small car production sector.

Why small cars are preferred in India?

Two wheeler users or secondhand car users generally opt for small cars as they are affordable.

These cars are much fuel efficient when compared to mid-size or luxury cars. The ever-increasing fuel price has affected the manufacturer as well as buyers. When car manufacturers are trying to attract more customers, the consumers are looking for fuel efficient cars. Small cars being a solution to this crisis getting more attention.
India is famous for congested roads and small lanes, where driving big cars is a hassle. Thus Indian buyers choose small cars for commuting.
Small cars are more compact and can be maintained pretty well when compared to the other segment cars. They are much reliable in terms of life and also resale value.

India had seen a constant blooming small car market. Now, with the present protuberance of the Nano, India might fortunately become the 2nd largest car market for small cars worldwide. Last year there were around 192,745 passenger cars exported from India. Interestingly, the percentage of small cars exported was higher than the percentage shared in production.

Subsequently, there has been a tremendous development in the small car market in India. Hyundai is planning to make India the primary manufacturing centre for the i10 model. Even Maruti Suzuki has plans to set a main centre in India for the manufacture and export of its `A Star’ model, whereas Nissan has proclaimed its intention to make India an export base. In future India has every possibility to be known as the small car hub in the world.

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