Of late, the Indian passenger car segment has been the center of activity. The entry of foreign players has brought in new technologies and world-class models. With more than 50 models in the market, we see a transition taking place.India, one of the largest economies of the world, is emerging as a potential car market. In spite of its huge population, India did not witness an explosive growth in the passenger car segment so far, though the automobile sector is growing rapidly. In comparison to the developed economies, India is far behind, as only 6 out of 1,000 people own a car, as against 500/1,000 in the developed countries.

Prior to 1991, the passenger car segment had only a few players like Hindustan Motors and Premier Automobiles dominating the sector. As a result, not many alternatives were available to the consumers in terms of models and technology and even the after-sales services were not a major thrust area for the manufacturers. The economic liberalization process has changed the scenario drastically. International players like, General Motors (GM), Toyota, Ford, Hyundai, Mitsubishi, Honda etc., have ventured into the Indian territory.

Currently, there are more than ten players in the market with about 50 models available for the consumer to choose from. The Indian consumer has never had such a vast variety. He is now the king and can choose according to his needs. Also, the change in focus of the Indian banking industry has opened up many financial options for the customer. The entry of international players has brought in world-class technology into the Indian market, leading to increased competition and implementation of international standards and practices. This has also led to increased efficiencies by the Indian players.