Indian car industry has been on its best in a decade and global auto manufacturers want to make the most of this opportunity. Many international auto makers have set up their production base in India which not only looks after the domestic demands but also caters to the demands generated abroad.

India, over the years, has shown an incredible strength in manufacturing world class compact cars, and the cost effective production choices offered by the country is appreciated by most car makers. Hyundai is one such car maker. It has a number of production facilities in India which looks after the export and domestic demands for its cars.

Another car manufacturer, Nissan Motors, wants to make India the hub for small cars. Predicting a shift in car markets from the west to BRIC countries, Nissan’s global COO, Toshiyuki Shiga said that the volume growth in western and other developed markets would be slow and the incremental numbers would come from countries like India, China, Brazil and Russia. “The car market is shifting from Japan, US and Europe where growth will be difficult to come by, even though the overall market may not be down. We have to adapt to this change,” Shiga told.

He also said that the company has already invested about Rs 2000 crore for a new car plant in Oragadam, near Chennai. Nissan Micra is up for a launch pretty soon, and the soft marketing for the same already begun too. Micra is the company’s first India-made car.

The company is expecting the hatch to be the volume driver in India. Nissan will also be exporting the Micra to Europe and other key markets from India.

But that is not all that the company plans to do in India. It has a lot of things up its sleeves. As it starts the production of Micra for India and overseas markets, it has also announced its wish for making an entry-level small car, mostly in Rs 2.5 lakh price range, for which it may partner with Hinduja group company Ashok Leyland. Though the new car is still miles away from production, we can safely say that the car will join Nissan’s export brigade from India.

Thailand serves as a major hub for making pick-ups by global companies, and India holds a lot of promise becoming an export hub. “There are a host of benefits that we get from India for compact cars. The investments are low here and the cost of labour and parts is cheaper than Europe. Importantly, there is a domestic market for such cars that gives us the scale to go for large numbers,” he said.