Boom of Small Cars on Indian Roads

Demand for cars remains to be on the rise in India. The entrance of small budget cars only sees to add to this, seeing as it becomes even more affordable by people. To support this theory, we have also seen the boom in the small cars that hit the Indian roads recently. The future of such ventures is for sure on the high.

We can see that it is one of the factors influencing the decision to purchase a car. Reliability and dependability has a strong impact while selecting a car. Performance also never stays far behind. Most of the car manufacturers like Toyota, Honda, Fiat and General Motors have also ventured into the small car market of the country, thus giving tough competition to the market leader Maruti Suzuki.

The reports that came out last year also stated that the government had offered discounts on the mini cars, in a way, acting as the catalyst for the increase in sales. In the meantime, the most popular entrant to this segment remains the Tata Nano, in effect due to its pricing.

Why do you think that small cars are such a hit in India? This article takes you through the factors that influence this boom.

Most of these major compact car manufacturers try and make cars that support a range of technically developed features. These cars as you know, comes at a very reasonable price, so making it more accessible for a large section of the population, who earlier would not even have thought of owning a car. Income of the consumer definitely becomes a ruling factor, while purchasing a vehicle.

Small cars also make it easy for the driver to manage the rugged roads and narrow lanes of the small towns in India, easily. Meantime, moving smoothly amidst traffic jam on the Indian roads bursting with sluggish trolleys, three-wheelers and bicycles, becomes easier. However, make sure that the steep increase in these cars does not result in pollution of air and sound or traffic jams.

We may look at some of the factors that make India popular among the small car manufacturers. Few of these include the technological knowledge, steady budget, the government rules in favor of these small cars as well as the wide ranging supplier base and the profitability in producing diesel power train. You can also be assured of much better financing options or even diverse preference by the users as the reason for this compact car sales surge.

Seeing as that a large part of the population stay in rural parts, the cause for mini car boom becomes evident. One other factor is that these cars can easily seat 5 persons, thus accommodating a full family. These cars, also naturally have lesser operational costs compared to the big cars, so making it more popular. Mileage offered by the small cars is one factor definitely in its support.

Cost of maintaining a small car or the cost for its service is definitely much less. With this we can conclude that this is definitely the key reason why they are a hit in India.



Source by Amy Anderson Lee