The Indian automobile industry will get a big shot of small cars in the year 2010. Ample number of small cars is expected to enter the market under major brands like the Maruti-Suzuki, Honda, Volkswagen, Fiat, Ford and Toyota. The introduction of small cars in large number will revive the small car market which now accounts for 75% of car sales.
The Indian car market has experienced a slow down in car sales due to inflation, high interest rates and increased fuel prices. The car manufacturers are trying clear their stocks by offering heavy discounts to combat the current crisis and also to pave way for the entry of new cars.
The upcoming new cars would have variants loaded with most modern features like ABS (Anti-lock brake system), automatic drive and airbags. These exclusive cars are likely to cost in the range of Rs 3 - 5 lakh (excluding the Rs 1 lakh marvel the Tata Nano).
In order to avail the benefits of exceptional subsidized excise duty on small cars, the models would have sport engines below 1200cc in petrol and 1500cc in diesel.
With plethora of car models, there would be a hot competition between the auto manufacturers in the small-car segment. New cars like ‘Splash` and ‘A Star` from Maruti-Suzuki, Tata Motor’s brand-new version of Indica, Hyundai i20, Fiat Grande Punto, 'Jazz' from Honda, Volkswagen’s Polo are in the line-up. Toyota has also plans to launch small cars that would come in both petrol and diesel options.
The consumers will surely get confused as which one to buy with so many choices in the segment.