Indian Automobile Market
The Indian market confounds global carmakers simply because of the way it is segmented. In the West, automobiles are generally segmented according to platforms -- that is chassis-engine combinations. Price plays a factor but only up to a point. In India, though, price plays the primary role in segmentation.
Consider first the segments in the European or American market. At the bottom, you have city cars' -- which include the Daewoo Matiz, the Hyundai Santro, the Maruti 800, Alto, Fiat Uno, the Zen as well as the Wagon R. Next come the budget minis -- which would include cars like the Suzuki Swift (our own Esteem).
The next segment, the superminis, would take in cars like the Opel Corsa, the Ford Ikon. Above the superminis are small family cars -- which include models like the Opel Astra and the Ford Escort. Medium-sized family cars are bigger and include cars like the Opel Vectra and Peugeot 406. Compact executive cars are small but immensely prestigious and include the BMW 3 series and the Mercedes C class. Executive cars embrace their bigger brothers -- the BMW 5 series and the Mercedes E class. Only a handful of cars are classified as true-blue luxury cars namely-- Jaguar XJ8, the BMW 7 series. And of course there are the niches like sports, sports utility, and exotics.
The Indian market, of course, is quite differently segmented. The Maruti 800 and Zen fall in a class by their own -- and are referred to as the sub-Rs 2.5-lakh cars. The next is the Rs 3-4 lakh segment -- which includes all the other cars that would normally be classified as city cars in Europe. Strictly speaking, the Tata Indica should fall in the super-mini category because of its specifications -- but because of price, it competes in the same segment. Above Rs 4 lakh and all the way up to Rs 10 lakh is the luxury car range.
It is loosely divided into two halves -- with Maruti Esteem, Ford Ikon, Hyundai Accent, Daewoo Cielo, Opel Corsa and Honda City 1.3 falling in the bottom layer, and the Opel Astra, Honda City 1.5 and Ford Escort in the upper range. The last segment is of premium car segment, which includes cars like Mercedes Benz and BMW.
Scooters India Ltd (SIL), US-based Amerigon and Bangalore-based Maini Group are negotiating a joint venture to manufacture an electrical passenger car. Priced at Rs 1.75 lakhs, the car will target the segment between two-wheelers and petrol/diesel based cars. Assembly from imported Completely Knocked Down (CKD) kits will start as soon as an agreement is finalised among the partners.
This venture represents a major manufacturing shift for SIL, a public sector enterprise, which so far has only produced two- and three-wheelers. It also plans to introduce an electric three-wheeler model, already in use in Nepal, into the Indian market.
Bajaj Auto has introduced its diesel three-wheeler in Hyderabad. The vehicle has a 416 cc engine and is priced at Rs 83,000, lower than its nearest competitor the Greaves Garuda, which is priced at Rs 85,000 (in Hyderabad). Bajaj’s petrol three-wheelers already account for 85 per cent of the India market. Its new product, consequentially, could erode its own base.
Indian Automobile industry has become more competitive in the export market due to its technological and quality advances, so much so that in quality conscious markets such as Europe and America, Indian automobile industry is emerging as a major player judging by its performance. India today exports: Engine and engine parts, electrical parts, drive transmission & steering pats, suspension & braking parts among others.
The Indian market confounds global carmakers simply because of the way it is segmented. In the West, automobiles are generally segmented according to platforms -- that is chassis-engine combinations. Price plays a factor but only up to a point. In India, though, price plays the primary role in segmentation.
Consider first the segments in the European or American market. At the bottom, you have city cars' -- which include the Daewoo Matiz, the Hyundai Santro, the Maruti 800, Alto, Fiat Uno, the Zen as well as the Wagon R. Next come the budget minis -- which would include cars like the Suzuki Swift (our own Esteem).
The next segment, the superminis, would take in cars like the Opel Corsa, the Ford Ikon. Above the superminis are small family cars -- which include models like the Opel Astra and the Ford Escort. Medium-sized family cars are bigger and include cars like the Opel Vectra and Peugeot 406. Compact executive cars are small but immensely prestigious and include the BMW 3 series and the Mercedes C class. Executive cars embrace their bigger brothers -- the BMW 5 series and the Mercedes E class. Only a handful of cars are classified as true-blue luxury cars namely-- Jaguar XJ8, the BMW 7 series. And of course there are the niches like sports, sports utility, and exotics.
The Indian market, of course, is quite differently segmented. The Maruti 800 and Zen fall in a class by their own -- and are referred to as the sub-Rs 2.5-lakh cars. The next is the Rs 3-4 lakh segment -- which includes all the other cars that would normally be classified as city cars in Europe. Strictly speaking, the Tata Indica should fall in the super-mini category because of its specifications -- but because of price, it competes in the same segment. Above Rs 4 lakh and all the way up to Rs 10 lakh is the luxury car range.
It is loosely divided into two halves -- with Maruti Esteem, Ford Ikon, Hyundai Accent, Daewoo Cielo, Opel Corsa and Honda City 1.3 falling in the bottom layer, and the Opel Astra, Honda City 1.5 and Ford Escort in the upper range. The last segment is of premium car segment, which includes cars like Mercedes Benz and BMW.
Scooters India Ltd (SIL), US-based Amerigon and Bangalore-based Maini Group are negotiating a joint venture to manufacture an electrical passenger car. Priced at Rs 1.75 lakhs, the car will target the segment between two-wheelers and petrol/diesel based cars. Assembly from imported Completely Knocked Down (CKD) kits will start as soon as an agreement is finalised among the partners.
This venture represents a major manufacturing shift for SIL, a public sector enterprise, which so far has only produced two- and three-wheelers. It also plans to introduce an electric three-wheeler model, already in use in Nepal, into the Indian market.
Bajaj Auto has introduced its diesel three-wheeler in Hyderabad. The vehicle has a 416 cc engine and is priced at Rs 83,000, lower than its nearest competitor the Greaves Garuda, which is priced at Rs 85,000 (in Hyderabad). Bajaj’s petrol three-wheelers already account for 85 per cent of the India market. Its new product, consequentially, could erode its own base.
Indian Automobile industry has become more competitive in the export market due to its technological and quality advances, so much so that in quality conscious markets such as Europe and America, Indian automobile industry is emerging as a major player judging by its performance. India today exports: Engine and engine parts, electrical parts, drive transmission & steering pats, suspension & braking parts among others.