The Indian car industry is overflowing with small cars. Besides the Indian car manufacturers, many foreign car majors are also rushing towards the small car segment.

Another auto major, Peugeot Motor Company from UK, is also planning to try the small car market in India by 2011. It is coming to India with a spacious five seater car, which is designed especially to cater the whopping small car consumers of India.

The company will start its small car production in Turkey or Poland and would make its debut in countries like Eastern Europe, Central Europe, Russia, Africa, Turkey, and South America.

The small car segment dominates the Indian car market. It has great potential compare to other class that contributes nearly two third of the overall sales of cars in India. Some of the car brands who have their presence in the segment are Toyota, Ford, Renault-Nissan, and General Motors.

Currently Maruti Suzuki is ruling the compact car segment in India with a market share of 50 percent followed by the Hyundai Motors, the second largest and exporter of small cars.