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From Tata to Hyundai, A Look at India’s Small Car Phenomenon
agmetalminer ^ | 25 May 2011 | TC Malhotra

Posted on 05/25/2011 5:54:46 AM PDT by Cronos

The car manufacturers launch new models on regular basis to surpass each other and capture the Indian market. It is expected that in the coming year, we will witness flourishing growth in the small-car sectors with the intrusion of auto majors like Fiat, Ford, General Motors, Honda, Skoda, and Volkswagen.

JD Power statistics show a steady growth in the number of small-car buyers in India. Representing 24 percent of the total market in 2009, the number has increased to 32 percent in 2010. Experts believe that the small car segment is set to expand even more.

After establishing themselves in urban areas, now all the big players are eyeing the untapped rural market in India and many companies have already announced the launch of new models, which may hit the Indian roads in next two to three years.

Hyundai Motor India (HMIL), India’s second-largest carmaker, “is betting heavily on its yet-to-be-launched small car to penetrate into the rural market,” one of the company’s top executives said in a PTI report.

According to the report, Y K Koo, the senior director of sales and marketing of HMIL, said the small car will be launched in the first half of next year, while the company has no immediate plans to export the car.

The car will be in a bracket lower than Santro; with a sub-1 liter engine, the new Hyundai vehicle will carry a price tag lower than Santro’s. Currently, the base model of Santro sells at Rs 280,000 ($6222.22). Hyundai will position this new small car in India that will directly compete against the Nano and Maruti’s Alto. Hyundai will power its small car with an 800cc engine.

Currently, HMIL’s market share stands at 19 percent and is second to Maruti’s. With the new small car, it hopes to garner 24 percent market share.

HMIL sold 603,000 cars in 2010 of which 336,000 were sold in the domestic market; the rest were exported. In 2009, the company sold 580,000 cars. In 2011, HMIL is targeting to sell 625,000 cars.

Most of the small cars have a price tag in the range of Rs 280,000 ($6222.22) to Rs 450,000 ($10,000). The base model of the Chevrolet Beat can be availed at Rs 334,000 ($7422.22) while the Figo can be bought for Rs 349,000 ($7755.55). Volkswagen sells the Polo at Rs 442,000 ($9822.22).


TOPICS: Business/Economy
KEYWORDS: automakers; hyundai; india; tata
Hyundai is going from strength to strength
1 posted on 05/25/2011 5:54:48 AM PDT by Cronos
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To: Cronos

The main point of the Nano was to provide an alternative to motorcycles for people who needed to transport more than themselves and one passenger. Three up on a bike (and sometimes four or more) is common here in India, and obviously unsafe, especially when one or more of the passengers is a small child (also common). The Nano isn’t much more expensive than most of the common small bikes here, so it was supposed to be an easy choice for lower-income families. Unfortunately, it’s still not that popular, and the engine-fire problem it’s had hasn’t helped. More sub-micro cars can only be a good thing here, though driving skills are going to need to improve rapidly as the traffic load increases (right now, I like to say that India cribbed its traffic laws from Aleister Crowley).


2 posted on 05/25/2011 6:07:11 AM PDT by Little Pig (Vi Veri Veniversum Vivus Vici.)
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To: Cronos; Lazamataz; JRios1968; SunkenCiv
I've test-driven many tatas.

Some were too small.

Others, though voluminous, suffered from a lack of suspension.

there. that's done.

3 posted on 05/25/2011 6:47:35 AM PDT by martin_fierro (< |:)~)
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To: martin_fierro
Interesting. Were these structural failures? Also, if extremely voluminous it could suggest that they were upgraded with extra metal put in that affects the overall structure.

Generally you can make these lemons out by the artifical coloring on the top.

4 posted on 05/25/2011 6:55:12 AM PDT by Cronos (Libspeak: "Yes there is proof. And no, for the sake of privacy I am not posting it here.")
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To: Little Pig

as gas prices increase, this may give India a tech advantage.


5 posted on 05/25/2011 7:08:40 AM PDT by Cronos (Libspeak: "Yes there is proof. And no, for the sake of privacy I am not posting it here.")
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To: Cronos

Not really. The sub-micro class is *really* tiny. They’re little more than enclosed golf carts. They have a one or two-cylinder engine, usually in the back, and can maybe hit 50mph flat out. They are also little better than golf carts in a wreck. They’re only fit for countries that have minimal or nonexistent safety standards. They couldn’t be sold anywhere in the West.


6 posted on 05/25/2011 7:17:50 AM PDT by Little Pig (Vi Veri Veniversum Vivus Vici.)
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To: martin_fierro; AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; ...

LOL!


7 posted on 05/25/2011 7:13:21 PM PDT by SunkenCiv (Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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To: Little Pig

Actually, in Rome, Florence and smaller towns in the Meditteranean, micro-cars sell very well. They may also make sense (at their prices) for 3rd cars for those who live in big cities as city cars


8 posted on 05/26/2011 12:09:33 AM PDT by Cronos (Libspeak: "Yes there is proof. And no, for the sake of privacy I am not posting it here.")
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