Global automakers in India are planning to launch new models and boost investment in the country, executives said at a conference, signaling brisk demand in one of the fastest growing car markets in the world.
French car maker Renault's (RENA.PA) Indian unit will launch five cars between mid-2011 and mid-2013, including small cars in 2012, its India head said at an industry conference on Thursday.
Toyota's (7203.T) India unit expects to sell 63,000-64,000 Etios compact cars in 2011, Deputy Managing Director Sandeep Singh said. The Etios has been designed specifically for the Indian market and will be launched toward the end of 2010.
The compact car segment in India, with cars measuring between 3.4 to 4 meters in length, is rapidly expanding and accounts for more than 70 percent of the total car market.
Narrow roads, heavy traffic and lower prices make compact cars attractive to the country's rising middle class that is looking for ways to spend its increased disposable income amid galloping economic growth.
India is seeing a near 35 percent growth in car sales with more than half a million cars already sold in the first four months of 2010/11.
Renault's small cars will be built on alliance partner Nissan's (7201.T) platform, Country General Manager Marc Nassif said. The cars produced at its manufacturing unit in the southern Indian city of Chennai, built jointly with Nissan, will be Renault-branded, and would be competitively priced, he said.
Though top carmaker Maruti Suzuki (MRTI.BO) still holds sway, global majors such as Toyota (7203.T), Honda (7267.T), General Motors GM.UL, Volkswagen (VOWG.DE) and Ford (F.N) are eyeing the lucrative small-car sector.
