Maruti, Hyundai low priced cars in the making
Maruti India, the nation’s leading car manufacturing company is going to launch a new entrant into the Indian car market priced at Rs 2.5 lakhs. The car will be launched towards the end of the next year, marking as the next entry-level car since the debut of Maruti 800 back in 1980s. Hyundai India also has plans to launch its small car Hyundai EON, the company which stands among the top hatchback manufacturing companies in India after Maruti Suzuki India. The company is planning to tag the new hatchback at a low price in order to give a tough fight to small cars like Tata Nano and Maruti Alto. Mr Arvind Saxena, the director of Sales and Marketing, Hyundai Motors India has expressed his views saying that there is ample of opportunity in India with the hatchback section being the largest in the Indian car market.
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Observing the current trend in the Indian car market, with the industry buzzing with the new car sales, the auto manufacturers are now weighing the options by introducing the low price cars. A report shows that the Gross Domestic Product (GDP), is expected to increase multi-fold with more income earners in the family and fewer dependents. However, Mr Mayank Pareek, the executive director of marketing in Maruti Suzuki India stated that this growth might not account for much with the richer getting further rich and the poor promoted to the middle income group.
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As reported by Jagadeesh Khattar, Managing Director of Maruti Suzuki India also explained that the car industry follows a thumb rule which states that any household is likely to purchase a car when the average household income equals the cost of the car. According to this study, an average Indian household will be able to cross the income barrier and will be able to afford more cars in coming 5-10 years. According to the forecast made by the market experts the India’s passenger car segment is likely to grow from 1.9 millions to 5.6 millions by 2011, the mini car segment can show the growth from 47% to 51% in 2011.
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