Abstract
The majority of growth in the global automobile industry in the coming decade
will come from emerging economies such as India, China and Eastern Europe. And
the largest contribution to growth of auto market in these countries will be
the fast-growing small car segment. The increasing disposable of middle class
population is the key driver of small car market in developing nations.
However, in developed regions like the US and Western Europe, stringent
environmental standards are increasing the need for more fuel-efficient cars.
India is likely to evolve into a global hub for small-car manufacturing.
Currently, India is one of the largest producers of small cars with the small
car segment accounting for about three-fourths of the Indian car market. The
fast-growing small-car market has encouraged several global auto companies
(Renault Nissan, Toyota, Hyundai) to announced plans for launch of small cars
in India. With the launch of Tata Nano, the stage is set for around a dozen
new small and compact cars to be launched in India in the next two years.
Maruti Suzuki India, largest passenger car manufacturer in India, has more
than sixty percent share of the domestic small car segment.
The small car demand in China, was not very encouraging 2007, but is expected
to bounce back in 2008. The narrow price gap between small car segment and
medium car segment has made medium segment cars a more attractive choice for
consumers.
Mini-cars account for more than one-third of the total volume sales in the
Japanese auto market. Suzuki and Daihatsu are the market leaders in the small
car market in Japan. A large number of Japanese consumers are moving from
luxury cars to mini-cars due to environmental standards and increasing gas
prices.
The report analyzes the small car market in India, China and Japan, besides
providing an overall view of the global market. The report also profiles the
major small car manufacturers, with a discussion of their key business
strategies. It also analyzes the major trends prevalent in the small car
market.
Key findings:
- Small cars represented 25% of new car sales globally in 2005, but this
ratio is expected to rise to 31% in 2010.
- 80% of the demand is expected to come from the developing economies. India
and China are expected to lead with 11% and 34% of the global output of
low-cost cars by 2014.
- By 2012, consumers around the world are expected to buy a record 29
million small cars annually, up 65 percent from a decade earlier.
- Small cars account for more than 70% of the Indian car market.
- Mini cars account for 35% of total volumes in Japan. The demand for
mini-vehicles in the Japanese market is expected to grow, eventually pushing
sales past 2 million units per year.
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