From Luxury to Necessity

by :

Remember the time when Ambassador was the only car to ply on Indian roads. It was the only popular car to be seen here. Those days when cars were a luxury in India, and a few house could afford a car, buyers had to wait for many years before having a second choice of car. Fiat Padmini came with that choice. And when Maruti came, it almost revolutionized the Indian car scenario. The small was considered a luxury brand and aspired by upcoming nuclear families.
The car market in India now sees a bunch of avid enthusiasts showing off their ultra luxury cars and wheel machines with imported cars. There came a time when International car makers understood the potentials of Indian consumer.
Now we call Maruti 800 to be the pioneer of people's car, before Tata's recent-launched wheel-for-masses, 'Nano' hit the market. Gone are those of flaunting your cash with Maruti 800. It's considered car for middle class Indians.
Studies say millions of Indian will entered the car boom category. In 2004 the auto market grew by 29 percent. However, the year followed by that saw a downfall in the same boom. In 2005, increasing fuel costs and stringent anti-emission policies added more to the collapse.
What does it mean by growing thirst for foreign cars in India? Indian roads have improved over time to load up such super luxury International cars.
Though, only a few roads in Indian metros are upto the mark of International standards. There are some four to six lane highways in India now and the Golden Quadrilateral that leads through New Delhi, Calcutta, Madras and Mumbai shows how Indian government takes infrastructure development a serious matter of concern.
Millions of Indian families will enter the car boom bracket in the next two years according to surveys. The auto boom in 2004 was with a 29 per cent growth rate was followed by a lull in 2005 due to meteoric fuel costs and more stringent anti-emission policies implemented by the Indian government. Increasing Auto Loan interest rates from the bank also added to the slowdown.
Indian economy is no wonder booming, constant weaker dollar values speaks of it. People from low income brackets are also getting easy finance to upgrade to four wheelers from two-wheelers. The post globalization India is definitely a consumers market and car buyers are most potential consumers.