CorporateCompetition to heat up as biggies gear up for small-car launch
Come 2010 and the small-car market is likely to witness intense competition with at least four new players set to launch their products in the market.
General Motors India, Ford India, Nissan Motor India and Volkswagen India are gearing up to launch their small car models--the Chevrolet Bear, the Ford Figo, the Nissan Micra and the Volkswagen Polo, respectively.
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"While competition will continue over the next three years, there will be sales of more than two million cars within one-year of launch," a Bangalore-based auto analyst, Salil Barua, said.
The overall auto market in the country will grow with the entry of new players, Barua said.
India"s auto industry is amongst the first sectors to recover from the global economic slump. Auto sales have surged 18 per cent to 7.8 million in the eight-months from April to November.
Passenger vehicles" sales have gone up 21 per cent to 1.2 million units.
"New entrants will dominate the market but it will not affect the existing players much. However, the picture will be clear only after the new cars are launched," Fiat India"s CEO, Rajeev Kapoor, said.
Fiat plans to launch its small car in 2011.