Wednesday, January 23, 2008

From Rickshaws To Jags, Rovers

Before, India’s roads are swarmed with rickshaws pulled by horses. Now, the scenario is far different. The rise of middle class echelon has brought cars into Indian roads. This is something unheard of years back.

India’s market is reaching new heights, that is. As the income increases, cars become an insignia of development. Rickshaws are still there but no longer pulled by horses. Cars, meanwhile, are expected to burgeon. According to ABC News, analysts predict that car sales in India will double in the next 5 years, making India among the fastest-growing car markets in the world.

Additionally, Ford recently announced that it is nearing sale of its British brands Jaguar and Land Rover in favor of Tata Motors. So expect the flashy headers of Jags and Rovers invading Indian roads soon…

"For a long time, we suffered from a psychosis of Gandhian simplicity," said Murad Ali Baig, a famed Indian auto journalist. "It was vulgar to have a prestige symbol like a car. But this is no longer happening. People now feel it's no big deal to have a car and flaunt it. If you've got the money, show it."

In the mid '90s, Indians had three cars to choose from, Baig said in an interview. "Now, you've got 60 odd models of cars and SUVs, apart from maybe 200 engines and trims and all the rest of it. Now people are getting confused about what they should buy. There are so many people driving cars, you don't have places to park. We have traffic choking up all over the place. And it will get worse before it gets better," he added.

Cars are gradually changing India. But India is also changing cars. Tata Motors, India’s largest automaker, will be launching the much-awaited cheapest auto dubbed People’s Car. With a sticker price of $2,500, who wouldn’t be tempted?

Aside from the cheapest car, India will soon be invaded by ultra-low-cost cars built by Suzuki, Nissan and Toyota. But the territory isn’t just a haven for affordable cars; luxury cars come aplenty. There’s the Mercedes, BMW and other renowned automakers.

"India is now beginning to come up significantly on the automotive radar of the world as a source for high-quality, low cost production," concluded Baig. "Five, 10 years ago foreign brands wouldn't even look at an Indian component company. Today, they are lining up — if they can save a penny here, a penny there, it makes a huge difference."