NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/06/21 - Indian small car segment is measuring new heights everyday. Resultantly, many global automakers are ready to enter India to tap the huge market, thus heating up the competition.
According to “Passenger Car Market: A Global Review (2006)”, a recent report by RNCOS, growing incomes, increased buyer incentives, attractive finance packages, and low ownership costs in India will continue to drive the demand for cars. On the back of these favorable factors, the car sales in India are expected to average over 12.5% annually during 2007-08 and more than 11.2% in 2009-10.
India’ fast growing market for small cars (it has a 75% share in the Indian auto market) is encouraging the international automakers to foray into Indian auto sector. Already, a lot of global auto companies have announced their plans to manufacture and launch small cars in the country. To date, Korea’s Hyundai, India’s Tata Motors, and Japan’s Suzuki are the leading names in the hatchback segment of small car market with their Swift, Maruti 800, Indica, Wagon-R, and Santro models. However, this year, over fifty distinct car models are waiting for their launch in India thereby making the market highly competitive.
Car companies are targeting high-income earning youth and two-wheeler riders who are looking to switch to four-wheeler. According to industry analysts, one-fourth of new car buyers move up from two-wheelers. Zhang Lin, General Manager for international sales, Chery, said, “We realize that the Indian small-car market is very competitive. But it is also a growing market”, as reported by ASIA TIMES on May 18, 2007.
ACNielson Co published a survey in 2007 showing that currently, only 9% Indians own a car and this percentage can easily go upto 25 by the turn of this decade. The Indian middle-class owning a car is projected to rise to over 580 Million (41% of the total population) by 2025, reported McKinsey and Co.
The report “Passenger Car Market: A Global Review (2006)” places the Indian automotive sector among the largest and fastest growing manufacturing sectors of the country. Continuous liberalization in regulations since early 1990s and large untapped domestic market have made India an attractive destination for the automotive players from all over the world.
The market research report provides a detailed analysis on major passenger car markets of the world with their past and current performance and future growth prospects. The report analyzes the markets rationally and discusses the market parameters in detail.
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RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.