Indian car market has been in news for strange reasons like marketing some of the world’s smallest cars like Maruti 800 and Tata Nano.
With the advent of Maruti 800, small cars were first introduced in India by Suzuki Motor Corp in a joint venture with Maruti Udyog and there was no looking back for them as they introduced the small car fad which later was taken up by other car makers as well. What continued to amaze the car pundits in the international scene was the demand that small cars commended in India even when big cars and gas guzzlers was the norm in western countries.
When General Motors, the then world’s largest car manufacturer entered India, they had to restructure their plans and bring in a small car which paved the way for Chevy Spark. Even Honda Motors which prided itself of marketing only premium sedans has been humbled to launch its hatchback small car Jazz in India. Toyota Motors, which until now has marketed big cars, now has been forced to bring in their Yaris to join the small car bandwagon fray. Breaking all the rules of game, Tata Nano has opened a whole new car segment in itself with the introduction of Tata Nano. Now another American automobile major Ford Motors has plans to launch a small car too.
So why are so many small cars entering the small Indian car market suddenly? Of course it is the Moolah which attracts them all. More than 80 percent of the Indian car market is dominated by the small cars. Maruti Suzuki itself controls nearly 58 percent of that small car market in India. So much so, that the revenues from Maruti surpassed the revenues from Suzuki’s U.S. market. Indian car market has shown a strong preference for small cars. The small car market is so strong, that it refuses to fade away in the next couple of decades.
The big car manufacturers feel that they will be able to reach out to customers more easily through small cars in India. These foreign based car companies want to enter the segment by bringing their highest selling cars in the international car market. If these companies are able to sell even a few lakhs units here in India, they can make a dent in the Indian car market.
With the advent of Maruti 800, small cars were first introduced in India by Suzuki Motor Corp in a joint venture with Maruti Udyog and there was no looking back for them as they introduced the small car fad which later was taken up by other car makers as well. What continued to amaze the car pundits in the international scene was the demand that small cars commended in India even when big cars and gas guzzlers was the norm in western countries.
When General Motors, the then world’s largest car manufacturer entered India, they had to restructure their plans and bring in a small car which paved the way for Chevy Spark. Even Honda Motors which prided itself of marketing only premium sedans has been humbled to launch its hatchback small car Jazz in India. Toyota Motors, which until now has marketed big cars, now has been forced to bring in their Yaris to join the small car bandwagon fray. Breaking all the rules of game, Tata Nano has opened a whole new car segment in itself with the introduction of Tata Nano. Now another American automobile major Ford Motors has plans to launch a small car too.
So why are so many small cars entering the small Indian car market suddenly? Of course it is the Moolah which attracts them all. More than 80 percent of the Indian car market is dominated by the small cars. Maruti Suzuki itself controls nearly 58 percent of that small car market in India. So much so, that the revenues from Maruti surpassed the revenues from Suzuki’s U.S. market. Indian car market has shown a strong preference for small cars. The small car market is so strong, that it refuses to fade away in the next couple of decades.
The big car manufacturers feel that they will be able to reach out to customers more easily through small cars in India. These foreign based car companies want to enter the segment by bringing their highest selling cars in the international car market. If these companies are able to sell even a few lakhs units here in India, they can make a dent in the Indian car market.
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