New US standards to spurt sales of small cars

Recent years have witnessed India emerging as one of the largest producer of small cars throughout the world. Especially after the legendary company Tata Motors launched Tata Nano integrated with all luxury features offering the moderate  average, there has been a boom in the auto industry trying to reduce the cost of vehicles and increasing their fuel efficiency. This is also been accepted by the experts, according to them, India is now coming up as the largest producer of small cars in the world since the companies like Tata Motors and Maruti have exhibited the methods of reducing the production cost by producing small cars like Tata Nano, Maruti Alto and Maruti A-Star. This has inspired other MNC’s to concentrate more on their production measures. On the other side the companies like Tata Motors and Maruti will need to experiment more on their vehicles for reducing the production and improving the fuel efficiency standards.

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However, all these efforts have grabbed the attention of American car producers who from the years have been masters dominating the car market throughout the world. With shift towards the small and fuel efficient cars the American car makers are now speculating on production of cars offering fuel efficient performance at low cost. According the new CAFE (Corporate Average Fuel Economy) has started working on these standards and expect to manufacture car offering an average of 54.5 miles per gallon by the year 2025.

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Although achieving an average of 54.5 per gallon by US auto makers is an amazing target. However according to Society of Indian Automobile Manufacturers (SIAM) which is an apex body, at present the Indian car brigade has an average of 155 gms per litre i.e., 250 gms per litre which is the target American car makers are expecting to achieve by 2016. On the other side India’s target to achieve 123-125 gms per litre by 2020 generates the hope that by 2020 Indians will have more fuel efficient cars as compared to average targeted by US CAFE. Taking a step ahead from American car makers the Indian car companies like Tata Motors are carrying out the test drives to achieve an average of 27 kms by Tata Nano whereas Maruti Alto and Maruti A-Star are already offering an average of 20-23 kmpl while Chevrolet Beat offers an average of 18 kmpl.

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That means now the seniors will learn from the juniors the ways of improving the qualitative features of their productions. This widens the huge opportunity doors for the companies like Tata Motors and MNC’s like Suzuki to depict their expertise throughout the word which have been practicing in Indian auto market. The experts are also of the view that with new CAFE standards the car market in US will shift towards small cars in coming few years. With India coming up the largest manufacturer of small cars will also mean the increase in opportunities for more export of vehicles and their components.

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