Auto cos to focus on small cars, ULC cars to take a back seat

Indian car market is one of the most flourishing and booming car markets in the world today. Presently, the small car segment of the market is the most lucrative segment. Tata Motors pioneered into the Ultra low cost car segment with Tata Nano and managed to get a decent response at the time it was launched. But now the sales seem to be falling apart. Tata Motors is trying its best to boost up the Tata Nano sales, but it sure has a backup plan. Tata Motors is also working hard on its best selling compact car, Tata Indica.On the other hand, Hyundai India is also working on a car model which is priced below its own cheapest car, Hyundai Santro, but the price will be above Tata Nano. Even Maruti India is following the same track as its refurbished Maruti 800 will be get a resurrect and will be put up against Tata Nano. Maruti is also working on a new 800cc car that will be fully developed in India by Maruti India, which is expected to rival Tata Nano.

Meanwhile, General Motors and Ford India have also given the Ultra Low Cost car a back seat for the time being. Even, Renault India, who was in plan to develop an affordable small car with Nissan and Bajaj Auto have also dropped the thought for now. These car makers feel that it is better to focus on the premium compact cars for the time being, as the consumers are more inclined towards this segment.

The car manufacturers are already baffled regarding the features of the car, the positioning details and the price points. Their biggest and major issue is whether to make an attempt to develop ULCC or focus on the flamboyant and affordable compact cars that would be purchased by consumers with elevated disposable income and escalating purchasing power?

However, the goal of the car consumers is no doubt moving up, but one thing is certain, that demand for the ULCC will never be eradicated.