Hyundai Motor India and General Motors have announced cuts in prices of their small cars, following the finance minister's announcement of excise duty reduction on small cars
Tata Motors MD Ravi Kanth said that the launch of the car couldn't be deferred or stopped due to a lack of infrastructure.
Since Hyundai has developed its 'small cars' based on the current definition of 4,000 mm, it could lose out on excise benefit if the length were to be altered to 3,800 mm as per the auto policy.
This car has been codenamed H800 and is also called Hyundai HA and it will take on Tata Nano, Maruti Alto and New Maruti 800.
Maruti Suzuki and Hyundai would make the largest gain.
On the back of a thriving domestic economy fuelled by an increasing appetite for consumption, global auto giant Mercedes-Benz is looking at developing a small car for the Indian market, a senior company executive said.
A task force set up by the heavy industry department will examine the definition of "small car" and suggest ways, including changes in the fiscal policy, to turn India into a manufacturing hub for such cars.\n\n
American car maker General Motors on Thursday said it has shelved plans to launch small car in India that was planned to take on Tata Motors' 'Nano', citing viability issues.
The alliance has already pushed back the launch deadline twice over the last three years.
The new tax regime has also been fuelling sale of SUVs, particularly the compact SUVs
Meanwhile, the company on Wednesday launched an advanced version of its mid-sized Verna sedan, priced at Rs 6.56 lakh-Rs 9.22 lakh (ex showroom Delhi).
The world's largest carmaker, Toyota, is evaluating options to introduce a diesel version of its small car to be launched in the Indian market by 2011.
With the small car segment driving growth, the country's domestic passenger vehicle market is likely to grow at a compounded annual growth rate (CAGR) of 13.9 per cent over the next five-years, a survey said.
Congress leader Rahul Gandhi launched a scathing attack on AAP convenor Arvind Kejriwal during his campaign rallies in Delhi, accusing him of being involved in the "liquor scam" and of being "afraid" of Prime Minister Narendra Modi. Gandhi also criticized Kejriwal's governance style, calling it "sheesh mahal politics" and accusing him of being absent when violence and hatred engulfed Delhi during the 2020 riots. He also attacked the BJP, accusing them of trying to change the Constitution and insulting the country's founding fathers.
The company has been saying it would introduce the new car and it would be priced below Fabia, the range for which starts at around Rs 500,000. Other models of the company in India are Laura, Octavia and Superb.
Car maker Ford India said it is looking at introducing a small car model in the country as part of its strategy to roll out eight new products by 2015.
Disappointed with dismal sales of its top end premium sedan Sonata, Hyundai Motor India Ltd will launch a diesel variant of the model this October, while it is readying to introduce a CNG driven small car by early next year.
The company is far behind its aggressive Japanese competitors, selling only 4,000 vehicles annually.
"The compact petrol 1.2 litre car will be configured to international markets and will not compete with the small cars available in India. Depending on market conditions, we will import the hybrid version from Japan later," M Takedagawa, president and CEO, said on Monday.
Ford is looking at multiple platforms to drive into India's small car market.
Michael Boneham, president, Ford India, said the small car would be engineered for Indian conditions and that the company was keeping options open for both petrol and diesel variants. Ford's mall car will mark its entry into the mainstream segment, popularly known as the B segment cars in India, which accounts for a little over 70 per cent of the 1.3 million India car market.
Carmaker Ford India on Wednesday said it will launch its small car in the country during 2010. "We are working on the small car programme and will be launching it in 2010," Ford India vice-president (Marketing Sales and Service) Scott McCormack said.
Japanese automaker Honda Motors is rolling out its small car in India by the last quarter of calendar 2009.
GM India at present, has two small cars in its portfolio -- the Chevrolet Spark and the Chevrolet Beat, which were launched on Monday.
In what signals an emerging battle among small car manufacturers, Hyundai Motors India Ltd has asked the country's apex auto association to act against moves by "some pressure groups" to change the definition of a small car.
The company on Thursday introduced its luxury sedan Teana.
The new small car, which will be based on Up!, may come to India in early 2011 and be the fourth car to be assembled by Volkswagen India.
Honda Motor president and CEO Takeo Fukui on Tuesday announced the company will launch a small car in India as it goes in for a new plant to expand capacity in the country.
Indian and international brands are now all focused on small cars.
While Japan produced 3.4 million small cars between January and December in 2009, India manufactured 1.48 million units in the same period.
Toyota Kirloskar Motors and Honda Motors have announced plans to launch a small car in India.
Bajaj Auto Managing Director Rajiv Bajaj said the company has, in partnership with Renault-Nissan, developed India's most fuel efficient and least-polluting car engine.
Japanese auto major Honda on Wednesday said it will focus on India and China for future growth as sales in developed markets like the United States and Europe continue to drag due to the global economic downturn.
Small cars account for 80 per cent of the domestic market
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