Trends in Indian Car Market

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The automotive industry in India is expanding due to huge demand of passenger cars. The car makers do survey to know the needs of customer and accordingly introduce new features in cars and offer various scheme to encourage customers to purchase their vehicles. Many companies provide easy loans for purchasing cars so that people get motivated to own cars and enjoy their life. The records in 2009 showed that India ranked fourth in Asia as largest exporter of motor vehicles. In 2010, India has become Asia's third largest exporter of passenger cars. The year 2010 was the best year for India's car market as it sold nearly 40 million passenger vehicles.

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Car market in India thrived because there is huge demand of cars by the young population. Indian youths compared to other luxury items prefer to spend on cars. These luxury cars allure youths and it is status symbol for them. It has been observed that the demand for luxury cars is not limited to urban areas but people living in tier II and tier III cities also have desire to buy luxury cars. Consumers have great choices of luxury cars. The cars have numerous special features and most important thing is that maintenance is also provided at different location of India by many car manufactures. If customers have any problem with car even in remote areas, company extends its services on payment basis to resolve it. Such facilities attract more Indian consumers to buy cars and as a result car market is booming in India.

Development in Car Market: With German car-maker Audi launching Audi R8 V10 Plus, several leading automobile manufactures too have launched various models of cars in India.

BMW has gained huge popularity in producing customer friendly vehicles. In September 2013, BMW launched the new 1 series compact luxury hatchback, and the new BMW 5 series, which is locally produced at the BMW plant in Chennai in diesel variants.

India is an awfully important market for Hyundai. While assessing sale of Hyundai Motor in India which is the India's second-largest car maker, it has achieved leadership position in the compact car market through launching a number of such vehicles.

Another triumphant automobile producer is General Motors that produce range of passenger cars according to the customer requirements. Its Chevrolet brand is most popular in India and many of its other vehicles are liked by the customers because of their price range.

Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd, has entered into an agreement with Ennore Port Ltd (EPL), to export at least 60,000 cars a year through the port for the next 10 years. HMIL has invested US$ 2 billion in two state-of-the- art passenger car manufacturing facilities in India. India contributes 25 per cent of the firm's in global sales. Maruti Suzuki India Ltd is establishing an operational integrated Research & Development centre in Rohtak, Haryana to expand its car business.

Tech Mahindra has signed an agreement with Volvo Car Corporation. The IT Company will provide Volvo with a service to maintain and develop a range of applications that can increase efficiency and reduce costs. Isuzu Motors India has policy to begin contract manufacturing of its sports utility vehicles and pick- up trucks at Hindustan Motors' in Chennai plant from December 2013.

Daimler India has extended its network across the nation to flourish in car market. The company has plans to get dealership facilities in over 100 identified locations across India by 2014.

Hero Moto Corp is another upcoming car manufacturing company that has vibrant plans to establish manufacturing and assembly facilities to widen its car market. Statistical figure: Statistical records indicated that the Indian automobile industry manufactured approximately 1.69 million vehicles in August 2013 as compared to 1.56 million vehicles in August 2012. This clearly indicates the increase in trend of automobile market in India. The cumulative foreign direct investment inflow into the Indian automobile industry during April 2000 to July 2013 was estimated at US$ 8,932 million, amounting to 4.5 per cent of the total FDI inflows.

Additionally, passenger vehicles in India was produced at 3.23 million in 2012-13 and it is anticipated that this figure will increase at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021.

The Indian automobile sector is poised for steady and high growth in the future. The demand is basically associated with rise in income levels of individuals that is happening due to fast paced economic development of the county.

However, before buying a car, it is highly recommended that customer must investigate the product proactively, viewing the technical specifications as well as other details in order to make good purchasing decision.

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