Why India's auto industry is betting big on the grand re-entry of small cars
small cars are set to make a strong comeback, say experts.
A recent surge in two-wheeler sales is an indication of improving sentiment at the entry level of the personal mobility market, according to the experts. An expanding pool of two-wheeler owners looking to upgrade to four-wheelers, and the need for affordable and efficient mobility solutions in metro cities and urban areas also suggest that demand for small cars is set to pick up, and they expect the segment to return to the path of growth by 2026.
Maruti Suzuki, the car market leader for which small cars were the bread and butter until a few years ago, is expected to enhance its portfolio of such models beyond the Alto, offering a mix of petrol, CNG and electric options. Some reports say the local unit of Japan’s Suzuki Motor is already testing small electric vehicles.
“We firmly believe that lowcost and small cars are necessary in our economic and social conditions,” Maruti Suzuki chairman RC Bhargava said at its recent annual general meeting, indicating the automaker’s stand on the segment. “A temporary setback in demand is not going to change our strategy. We do expect the small-car demand to revive. The nation has a need for small cars,” he said. “We are waiting, maybe by the end of fiscal 2025-26, we should have the demand coming back.”
Two-wheeler industry to grow by 8 pc, tractors by 4pc annually: Report
The share of small cars in India’s passenger vehicle market has reduced to 3.24% from 7.38% five years ago and around 50%
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