From HM's Ambassador to GM's Chevrolet Optra, the Indian passenger car industry has traveled a long way. The liberalization policies of the government in 1990s was an important milestone.
Indian
automobile market is estimated to sell more than one
million cars and trucks in 2003.1This makes
the Indian market bigger than the Australian market
but smaller than the Canadian market. In India, small
cars like Maruti's 800 model, with an engine displacement
of less than 1,000cc, account for 25% of all cars sold.
However, some of the foreign players with their focus
on large cars are increasing their market share.
The
passenger car segment has witnessed radical changes
in demand, style/preferences, utility and competition.
Hyundai's Santro is the best-selling car in the small-car
class, followed by Tata's Indica and Maruti's Zen. Hyundai
and Fiat have already established regional research
and development centers in India, and is using the country
as an export base. GM has also launched its mid-range
Chevrolet Optra and Opel Swing models, and has plans
to increase its production capacity from 12,000 to 40,000
units a year. Ford also has a manufacturing unit in
India. Volkswagen has a presence though its Czech subsidiary,
Skoda, which already manufactures cars in India, to
carry the corporate flag.
The
Indian passenger car industry2was dominated
by Premier Automobiles Limited (PAL) and Hindustan Motors
Limited (HM) prior to 1980. With the entry of Maruti
Udyog Limited (MUL) in 1982, the market structure of
the passenger car industry in India changed dramatically.
MUL captured a major share of the market as it offered
a better product at a lower price. Subsequent to the
entry of MUL, the market share of PAL and HM declined
rapidly even as they were able to sustain sales in volume
terms. |
