Small car segment, an overcrowded but growing market in India

In India, the small car market has observed expectational growth. Indian auto market is the second fastest growing car market in which small car segment includes 70 per cent of total share. This crowded but growing segment is luring various car makers to invest. Various companies are playing their cards to utilize the growing market segment. Recently, a lot of auto giants has invested in the small car segment and now also ruling the segment with its respective small cars.

Talking about Toyota Motors that will launch its much awaited and first hatchback Toyota Etios Liva in India by next year in April. It recently inaugurated the sedan model of the Toyota Etios. With this expansion in the portfolio, Toyota plans to increase its market share and expects to sell as many as 70,000 cars by next year.

Ford Figo, launched early this year is a hatchback which has won hearts of many in the Indian car market. The company recently launched rolled out the 50,000th Ford Figo from its plant which is a milestone to be achieved in a small time span. Till now 58,000 Ford Figo have been already running on the Indian roads.

The German car makers Volkswagen also introduced a hatchback Volkswagen Polo in the Indian auto markets to bring the small car segment in its favour. Volkswagen Polo was accepted really well and paved way for more competition to oust this German marvel. This kind of reaction only goes to prove the level of competition and growth opportunities present in the small car segment which Polo achieved to capture.

Honda Motors, in India will soon launch a hatchback in 2011 for the Indian buyers, it is expected that the small hatchback will be coming with a price range below 5 lacs. As per Jnaneswar Sen, the vice president (marketing) for Honda Motors, the market sells 80 per cent of the hatch back cars. He also added that, when the company will come with its small car, it will gain a lot of popularity because of its brand image already established.

Nissan Motors, another auto brand who recently jumped in the hatch back segment with the launched of Nissan Micra petrol version, is also coming with the diesel version of the same on December 10th. The company from a long time was thinking to explore the diesel market in India. The company will soon exceed the dealership network.

The small car segment is luring the international auto biggies to invest in the growing segment. The companies are coming with new models in a very short span of time in the already established segment.

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