Car War in the Domestic market

The Indian Auto market is the second largest growing market in the world after China and this is a major reason that the companies are investing here to get their share of pie. With this the Indian customers gets a range of options to choose from in every segment but simultaneously the competition among the auto manufacturers is also increasing at alarming rate. Among all, the domestic small car segment, majorly led by Maruti and Hyundai is facing the highest growth and this is the reason that the global majors like Honda, Toyota and Volkswagen has started investing in it. This has led to loosen grip of Maruti and Hyundai on the segment but at the same time these auto majors are also coming up with new pricey premium cars this year along with a focus to regain lead in domestic market.

Maruti Suzuki, the market leader plans to bring two big cars this year in domestic market- Maruti Kizashi and Maruti SX4 diesel. Maruti Kizashi is going to be the highest priced model of the company on Indian grounds with a price tag of Rs 16 to 18 lakh.

The major rival of Maruti Szuki, Hyundahave also announcede three major launches for 2011. out of these three launched,two are expected to be mid-sized sedans- Hyundai Avante and Hyundai Verna. The small car segment of domestic market is gong to recieve the most awaited Toyota Etios Liva and Honda Brio. This makes the most sensational launces of the year 2011.

Addressing the issue, Mr. Mayank Pareek, managing executive officer, Maruti Suzuki India Ltd said that Maruti Kizashi is going to be an important launch for the company from a learning point of view. He also said that the car will help the company analyse the premium car segment in domestic market which has great scope in coming future.

At present, for every four cars sold in India, 3 belongs to Maruti and Hyundai and if Tata cars are included, less than 14 per cent share is left for other 8 players. And the small car degment constitute 80% of the total domestic market. Coming to the premium segment, the major players include Skoda, General Motors and Honda. In this regard, Mr. H W Park who is the managing director and CEO in Hyundai Motor India Ltd, said that Hyundai is able to make its place in the big sized car segment effectively and Hyundai Elatra makes the largest selling car in the chinese auto market.

Six sedans are included in the global portfolio of Hyundai out of which, only 2 are launched in India- Hyundai Accent and Hyundai Sonata. To give a tough competition to Honda Civic and Toyota Corolla Altis, Hyundai is coming up with its Hyundai Avante. The cmpany tasted failure with its Hyundai Elantra and Hyundai Sonata.

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