Slumping Indian Car Market Spur Cheap Cars

June 29, 2007 at 7:43 am Leave a comment

There are ways that we can do for us not to sacrifice any of our needs and wants – like luxury items such as accessories, new car parts and cars. And we also do need to consider other things before we go on ahead and purchase what we want or need. For example, if you were to buy a car, you would consider stuff like budget, price, model, brand, features, and specifications.

In India, the slumping market they have right now is considered to be one of the factors to encourage buyers to go for cheap cars. Based from the report by the Agence France-Presse, Nissan-Renault, India’s Tata Motors and Global Automobiles are on their way to work on this potential strategy.

This approach will help out alleviate the recent situation of the Indian auto market. At the same time, they are looking forward to see more number of car buyers making a deal with Nissan-Renault and the other two carmakers. All companies are working hand in hand to be able to offer the latest car models by just paying $3,000 or less.

As consequence of the scheme, almost all Indians who own motorcycles who could by no means meet the expenses of owning a car however they will be given the chance to own one of those models that the companies will be introducing.

Nissan Renault, Tata Motors and Global Automobiles are the knights in shining armor of the Indian auto market. It has been recorded that the auto sales for the month of April and May has been accessing to a downward slope in the demand curve.

The first one will be Tata’s small car and this one will cost 100,000 to 125,000 rupees. Using the present dollar exchange that costs about $2,457 to $3,017 – this one will be manufactured in the communist-run state of West Bengal and accessible by next year.

Ajay Shethia, an analyst with Enam Securities, said that “the management has indicated that a prototype of the small car is ready. It could be a four-seater with an engine capacity of 630cc.”

Even though India has major road situations and air quality troubles, the said cars are perceived to be the cure for they have been created to meet the lower emissions’ standards.

The Nissan-Renault company broadcasted last week that they perceived small vehicle development as eye-catching and that they desire to manufacture a car in India in collaboration with Mahindra and Mahindra.

Anyway, if given the chance, the situation will be more advantageous for those companies to manufacture their vehicles in India because of low cost of production which is quite the same thing in Japan.

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Entry filed under: Uncategorized.

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