Small cars star at the Delhi motorshow

Overview of the Event

The atmosphere at the Delhi motorshow or Auto Expo India is almost festive.

More than two million visitors are expected in the seven day event.

Festive Launches and Attractions

Many of the car launches are accompanied by music and dance performances in keeping with the cool swanky new vehicles that are being launched.

There are entertainers all around the park.

Vehicle Innovations Highlighted

Tata Motors has even launched an air conditioned truck for the Indian highways where the driver has ac cabins and bunk beds to sleep in.

There are many hybrid and electric vehicles being launched in both the two wheeler and the four wheeler segments.

Focus on Small Cars

But for the second year running the big idea is the small car.

Almost all major car makers of the world are here launching their version of the compact car for the Indian roads.

India's Growing Market Position

India is currently the 11th biggest car market in the world though it is set to be the seventh largest by 2016.

First to launch was the new compact car from General Motors the Chevrolet Beat.

Global Ambitions of Manufacturers

General Motors intends to sell this car worldwide across Europe parts of Asia Pacific and North America.

Volkswagen which recently bought a stake in Suzuki with a view to boost its Indian operations via Suzuki Maruti displayed its small Polo.

Japanese carmakers Honda and Toyota also unveiled small concept cars which they are looking to launch by the end of this year or early 2011.

Strategic Importance for Toyota

India will play a pivotal role in Toyota's global expansion plans and the time has come for us to strategically accelerate our growth here.

Government Support and Policies

As more and more foreign players are coming down to India to launch their cars the Indian government too is focusing on the industry here promoting it as an automobile manufacturing hub.

The government is offering incentives for foreign companies to invest here alongside penalties for those importing cars from abroad by way of punitive tariffs.

Manufacturing and Export Hub

As a result more and more car makers both foreign and Indian have invested heavily in the market and have extended their production plans in India.

But it is not just the market that is important here.

Many carmakers are using their production facilities here as an export hub.

Tata Motors and the Nano

One of them is Tata Motors the makers of the ultra cheap Nano.

We also recognise there is a market for the Nano not only in developing countries but possibly in the developed countries.

Cost Advantages in Production

Others manufacture cars here because they can produce them at a third of the cost compared with say the US.

To many the combination of relatively low cost of labour and high level engineering skills is irresistible.

Economic Recovery and Future Outlook

And now that the country's economy is back on track with India having largely bucked the global downturn the future looks bright.

As more and more middle class families aspire to buy cheap compact vehicles carmakers can expect the party to continue throughout this year and next.

Categories and Keywords

Categories: Business Auto Industry India Economy Manufacturing.

Keywords: small cars Delhi motorshow Auto Expo India compact vehicles hybrid electric Tata Nano Chevrolet Beat Volkswagen Polo Toyota Honda manufacturing hub export.

The Delhi motorshow showcases the emphasis on small cars as the main attraction with festive elements enhancing the visitor experience across the seven day period.

Visitors encounter a range of launches focused on compact designs suited to Indian roads and conditions.

The small car focus reflects the market dynamics where India holds position as the eleventh largest car market with projections to rise significantly.

Compact vehicles from various makers target the needs of growing consumer bases seeking affordable options.

Production strategies center on local facilities that allow cost effective manufacturing supporting both domestic sales and potential exports.

Incentives and policy measures encourage investment while high engineering capabilities combined with labor aspects make the location attractive for global players.

Hybrid and electric options in multiple segments add to the innovation displayed at the event.

The overall outlook remains positive given economic recovery trends and rising aspirations among consumers for accessible transportation solutions.

Event features include music dance and entertainers that complement the vehicle presentations creating an engaging environment for the large expected attendance.

Specialized vehicles such as the air conditioned truck demonstrate adaptations for local infrastructure requirements.