The long-awaited reclassification of passenger cars has brought in a great deal of confusion between the car makers and the Society of Indian Automobile Manufacturers (SIAM).
Car makers are continually pushing for a better classification in terms of car length, engine displacement and horsepower but SIAM has only considered car length. SIAM reclassified car models on the basis of lengths.
Car makers are outraged because they feel that if the classification criteria for segmentation changes, it will directly affect the car market shares. This is mainly because if cars are classified based on length, Maruti 800 will lead the segment. Because, if reclassification is done on the basis of car length then Maruti 800 will be the only car to fall under the first segment that classifies cars of up to 3.4-metre as A1. This will definitely affect the market share positions.
Labels: car makers, indian automobile Industry, Maruti 800
