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Old 28th September 2009, 10:32   #1
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Default We are the World's second largest small car maker!

India is now the World's second largest small car maker! Around 40 (wow) new cars were launched last year; says rediff! Is it?

"Ford unveils the small car that it will make in India from next year; Renault announces fresh Indian plans, adding Nissan as a partner after having already selected Bajaj for a joint venture; Volkswagen in turn will introduce its small car next year. "

India, world's 2nd largest maker of small cars : Rediff Business News, Latest India business news, India Economy news, World Business, Finance news, Latest business headlines, business videos and business articles.
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Old 28th September 2009, 11:24   #2
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40? I think they cetegorise all indian cars as small cars.
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Old 28th September 2009, 11:37   #3
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I dont think there are even 40 total small cars in India.

Any how no small achievement for a nation that just produced only 3 cars about 30 years ago. And we are shortly to become No. 1 small car maker in the world, after production of all new manufacturers start here.
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Old 28th September 2009, 11:39   #4
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@SLK: They have mentioned 40 new cars, not 40 new small cars. 40 new cars include all the segments, They may have included all limited edition variants (each car in India has a limited edition version, from m800 to the topend segment cars) as well.

So, we are second largest small car market in the world , just behind Japan.
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Old 28th September 2009, 15:30   #5
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Quote:
Originally Posted by SLK View Post
40? I think they cetegorise all indian cars as small cars.
The article mentions 40 car models released last year - which I suspect includes cars in all segements and SUV's including variants.

Great news though on being the second largest small cars makers in the world, and they say the boom is just beginning!
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Old 28th September 2009, 16:15   #6
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Quote:
Originally Posted by mnhegde View Post
@SLK: They have mentioned 40 new cars, not 40 new small cars. 40 new cars include all the segments,
Quote:
Originally Posted by gomzi View Post
The article mentions 40 car models released last year - which I suspect includes cars in all segements and SUV's including variants.
Yes, yes I got it.

The number of cars launched is out of context, when we talk about second largest small car maker.
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Old 28th September 2009, 23:15   #7
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It's good to Know that our Indian Auto market is getting mature. It also shows the purchase power of Indian.
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Old 29th September 2009, 00:22   #8
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Everybody is telling India is the hub for small cars, second largest small car market in the world, around 40 new cars will be launched in next year etc. etc. But what is the true story? Only 4 of every 1000 Indians own a car, compared with 35 people in country like Thailand, 92 in Brazil, 187 in South Korea and 450 in the developed world. Despite such low ownership level, car sales in India fell by nearly 3% over the past three financial years because of their high price relative to average income. Currently, India is one of the largest producer of small cars with the small car segment accounting for about 3/4th of the Indian market. CRISIL Research estimates 65% rise in household car affordability with the launch of TATA Nano, clearly indicates the affordability of average Indians. Though in India, among the 25 car manufactures only 5 makes car costs less than 4 lakhs (I guess this is a decent level of cut off value of small cars, though in reality still it is too high for average Indian). There are almost 115 car models available in the Indian market with 405 variants. Among these only 16 (14%) car models are available with 53 (13%) variants which costs below 4 lakhs!! Simultaneously, small car export have grown at a CAGR of 21% during last five years and expected to more than double by 2013-14.
With so low level of affordability all the so called biggies in the automobile sectors bringing their luxury models in India and looking for an annual sale of few hundreds. I guess all the global manufactures is coming to India just to set up a manufacturing base here because of low production costs and eyes towards the export market. I guess all the 40 cars that will be launched next year would costs more than 6 lakhs. As a car enthusiast we are delighted but there is no practical reason to cheers when more than 90% of us can’t afford that. Can’t they offer affordable car to masses? Government should give them license only if they are agreed to make at least one low cost car model out of 5 they manufacture here in India. Rich Indians have enough money to export high end cars by paying appropriate duty.

Last edited by gaddiwale : 29th September 2009 at 00:25.
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Old 29th September 2009, 14:02   #9
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Quote:
Originally Posted by gaddiwale View Post
Everybody is telling India is the hub for small cars, second largest small car market in the world, around 40 new cars will be launched in next year etc. etc. But what is the true story? Only 4 of every 1000 Indians own a car, compared with 35 people in country like Thailand, 92 in Brazil, 187 in South Korea and 450 in the developed world. Despite such low ownership level, car sales in India fell by nearly 3% over the past three financial years because of their high price relative to average income. Currently, India is one of the largest producer of small cars with the small car segment accounting for about 3/4th of the Indian market. CRISIL Research estimates 65% rise in household car affordability with the launch of TATA Nano, clearly indicates the affordability of average Indians. Though in India, among the 25 car manufactures only 5 makes car costs less than 4 lakhs (I guess this is a decent level of cut off value of small cars, though in reality still it is too high for average Indian). There are almost 115 car models available in the Indian market with 405 variants. Among these only 16 (14%) car models are available with 53 (13%) variants which costs below 4 lakhs!! Simultaneously, small car export have grown at a CAGR of 21% during last five years and expected to more than double by 2013-14.
With so low level of affordability all the so called biggies in the automobile sectors bringing their luxury models in India and looking for an annual sale of few hundreds. I guess all the global manufactures is coming to India just to set up a manufacturing base here because of low production costs and eyes towards the export market. I guess all the 40 cars that will be launched next year would costs more than 6 lakhs. As a car enthusiast we are delighted but there is no practical reason to cheers when more than 90% of us canít afford that. Canít they offer affordable car to masses? Government should give them license only if they are agreed to make at least one low cost car model out of 5 they manufacture here in India. Rich Indians have enough money to export high end cars by paying appropriate duty.
Valid points except lets leave the defination of rich indians out of it as even car enthusisist - rich or no so rich - suffer due to the duties.

The Govt should focus on the roads - take road tax via toll based on road usage, and reduce the tax it imposes on cars itself.

We are currently forced to be the 2nd largest small car market due to the roads, prices etc.
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Old 29th September 2009, 18:59   #10
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There are so many "claims" being made in the media nowadays and this too is another to reel over. Just consider the number of new car(small car) registrations in the entire UK to the same for all of India and before you catch your breath, it is worth pointing out that the entire UK is smaller in sq.km. area than the state of Andhra Pradesh which is one of 28 states!. What next will the media "claim", i wonder?.

Last edited by nickatnite : 29th September 2009 at 19:01.
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Old 29th September 2009, 19:02   #11
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Wait till the Nano's production numbers stabilise and are able to serve demand. Then we'll see who the No.1 is .

Honestly, I'm not surprised. Despite all the economic bad news, our automotive industry has reported some strong months so far in 2009. A slew of new launches, easing up of finance, a burgeoning middle class etc. etc. are at play here. The penetration levels are amongst the lowest in the world, but hey, that's only showing the potential right?

Not only is India emerging as a small car production hub (Thanks to Hyundai for showing the way), but slowly & steadily, R&D activity is substantially growing year on year. We've got the talent, we know value engineering better than any one else, the only thing we need is more support from the Center.
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Old 29th September 2009, 19:03   #12
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Whatever may be the count, now its upto the Government to provide good infrastructure to handle the influx of more and more Cars on Indian Roads.
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