Crowded Market

Honda has pleased the Indian car lovers with its small car concept at the Auto Expo (expected to be launched in Thailand in 2011). This one among the ten cars slated for this Auto Expo. The mood in the Maruti camp is somewhat shirking that its CEO revealed the prospective hurdles to manage the dominance in the Indian car market. He said the company has to devise strategies for equally new products allied with strong network.
Maruti has a lion’s share in the Indian car market with its 800, Alto in addition to the proposed 7-seater. The US bike maker Harley-Davidson is also launching some 12 models for India this year and commercial vehicles in association with Eicher Motors and Volvo thereby increasing the production to 100000 units in 2015 along with a 15% share of heavy duty truck segment.
Volvo is increasing its component sourcing by five times ($5 billion) of which 50%will be localized. Polo, the sedan from VW, will find the owners in India from the second half of 2010. Honda is planning to secure sourcing of parts for its car from India – Indian steel for its small cars at lower costs. In all India has become an influential market for the entire auto industry spread to all ranges of cost.

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