The high growth in the Indian economy has resulted in many foreign car manufacturers entering the Indian market. Rolls Royce, Bentley and Maybach are examples of the few high end automobile manufacturers to enter India in the recent years.
Chennai is the automobile capital in India. It has a lot of foreign direct investment in automobile industry. Chennai is often called as the 'Detroit of Asia
There were only a few handful of cars in the Indian market in the 1980s. Most of these were outdated models like Hindustan Motors' Ambassador (which is still produced and sold). The only car with the latest technology then was the Maruti 800. It became very popular because of the low price, high fuel efficiency and good reliability. Since then the market has grown with over 20 manufacturers and hundreds of models and variants. The Maruti 800 is at the lower end of the price range costing approx US $5,000 and Bugatti Veyron at the other with a price tag of over 2 Million US dollars.
The Indian automobile industry has matured over the years and is now highly comptetitive with major Japanese, Korean, European and Indian companies all holding significant market shares. In addition to foreign models like the Hyundai Santro and the Ford Escort various indigenous cars like the Tata Indica and the Mahindra & Mahindra SUV, the Scorpio are also popular. These cars exported to the markets worldwide. An electric car is also manufactured by a local company, REVA. Tata Motors plans to produce the world's first air powered in partnership with MDI of France.
The passenger vehicle sales in India crossed the one million mark in 2005. This segment grows at 10-15% annually. Around 85% of the cars sold in India are financed as against the global average of 70%. In neighbouring China,only 15-20% vehicles are financed. There are only three cars in India for 1000 people as compared to the other extreme 500 cars for 1000 people in the United States.... [continues]
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