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small cars in India

Top auto manufacturers are in the process of bringing out low cost small cars in the booming Indian auto industry. Following the success of Tata Nano, top car makers in India like Hyundai and Maruti Suzuki are focusing on designing and manufacturing vehicles in the small car segment each priced at around Rs.2 lakhs.

Tata Motors too are concentrating on increasing sales of Nano while at the same time thinking of bringing out a car which is priced between Nano and Indica. Hyundai too is busy developing a model which will be placed above Nano and cheaper than its Santro.

Not to be left behind at Maruti Suzuki who are concentrating on an 800 cc car to take the place of their earlier M800 which is on its way out. Ford, Renault and GM are in the meantime bringing out premium cars and are not contemplating venturing into the small car arena.

According to Mr. Hormazd Sorabjee, Editor of Autocar India, big cars are much in demand though there is plenty of market for low cost cars as well. Costs involved in manufacturing small cars are quite high which makes it difficult to launch very often.

source: rushlane

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