The Indian auto market is hot and temperatures are still rising! Car sales in India are expected to touch the 3 million mark by 2016, and many automakers don’t want to miss the train. Small cars hold a huge market share in India and it is the most competitive sector. With tax sops from the government for the production of small cars, a move to encourage people to buy fuel-efficient vehicles, this car segment has become ‘hot and happening’.
Small car market in India is a stronghold of the Suzuki Corporation. Tata and Hyundai also have a good share in the market. Tata is at work to produce a car that will cost nearly $3000, and that makes the competition more intense. Ford says its price will not be comparable to the Tata’s small car and may hover at $14000. Ford is ready to set foot in the entry-level segment, where sticker prices are going lower and lower.
With its global rivals planning to sell small cars in India, Ford has decided to speed up matters a bit. GM, Renault, Honda Motors, Volkswagen AG and Skoda Automobilova AS have already announced plans to get in the Indian market.
Ford currently has a small vehicle lineup in India and will probably boost it with its arrival in the small car segment.
Companies around the globe are clamoring to establish a foothold in this emerging market. The production costs for developing the cars in India are low and so are the profits as compared to the premium segments, but the automakers hope that the volume of sale will make it all worthwhile.
[Source: CNNMoney]
