A huge number of new car models as well as compact cars, sedans and sport utility vehicles are likely to beat Indian roads in the coming year providing more alternatives to the car buyers to own vehicle of their choice. Different auto companies introduced as many as 72 new car models leaving one behind the other.
Soft interest rate regime and hike in salaries due to execution of sixth pay commission increased the purchase power of buyers in particular of service class during the year that pushed sales 27 percent in 2010. Honda and Toyota, two big players of auto segment will bring in two new small cars in 2011 in the price range of Rs 500,000.
Analysts trust that car demand is expected to pick up in the coming year given to low penetration of cars in India particularly in the rural segment.
Jagdish Khattar, industry veteran and chairman and managing director Carnation Auto said, Introduction of new models provides customers a wider choice apart from growing the market. The fact that automakers are currently focusing on the entry-level sedan segment is a very good development for the industry as it helps attract 65-70 percent customers in the country who previously own a small car and have to improve to a bigger car.
