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India is set to lead the low-cost vehicle revolution and is likely to grab the top slot in both low-cost vehicles sales and production. By 2014, the year by which this segment is expected to develop substantially, India’s share of the estimated annual production of about 3.5 to 3.7 million low-cost vehicles is projected to be nearly 34%. In comparison, adversary China which is ahead on most parameters — the number of telecom users, internet connections, cars and retail — is expected to account for only 11% of global production.
India will emerge as the largest producer of cheap vehicles not only in sub-compact cars (the proposed Rs 1-lakh car of the Tatas and Renault’s $3,000 car) but also low-cost multi-utility vehicles. A recent report also predicts that India will become the single-largest test ground for all kinds of low-cost vehicles as almost all auto makers would plan to launch their low-cost offerings in India.
The Renault-Nissan combine, Italian automaker Fiat and Indian company Tata Motors are likely to emerge as the three largest global low-cost vehicle manufacturers. By 2014 the Renault-Nissan partnership will corner 25% market share in low-cost vehicles, followed by Fiat (21%) and Tata Motors (15%). Japanese automaker Toyota will be another close contender and likely to finish with a market share of 14% during the same period, said the report.
India’s strong low-cost auto component base will also help it gain the number one position in low-cost vehicles. Even though China competes with India on auto parts it faces serious intellectual property issues.
According to the Society of Indian Automobile Manufacturers (SIAM) small cars (Alto, Santro, Wagon R and others ) grew 16% to touch 7.14 lakh units in 2005-06. The same segment clocked more than 23% growth to touch 8.81 lakh units in 2006-07. The mini segment which is essentially Maruti 800 is the only model which did not grow its sales 2005-06 and grew only a little over 1% in 2006-07.
Free Member, Joined :02/02/2007
No of Topics Posted : 122
Reply/Comments : 16
I am happy to read this about low-cost cars from India. I read another article in the August Business Week about low-priced Tata cars. I am very interested in buying a few of these cars and trying them out in West Africa. Please lead me to the manufacturers so I can made some orders soon.
Thank you,
Ishmael Bruce
(presently in Canada)
Free Member, Joined :08/04/2005
No of Topics Posted : 0
Reply/Comments : 2
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