The Popularity of Small and Mid-segment Cars in India

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Small and mid-segment cars in India are seeing sky-rocketing sales. There are more and more of these small cars making their way on to the Indian roads. Car companies, whether luxurious or otherwise, are planning to launch their small vehicle models in the country. The demand has been more than the supply and choice for the customers. The addition of women folk to the driver category is making the option of small cars and even second hand cars lucrative for car companies. However, here are some detailed reasons as to why the attractiveness of small, economy cars sees no dull moments.

Hyundai i10 Small Car


Affordability is the key to the rise of this segment of cars. Most of the mid and small segment cars by most companies are cost-effective. In fact, there is a rising competition to not only offer more varieties to the demanding consumer but to keep the financials and the profitability of the car companies in mind by offering and supplying more of the necessitated product. Pricing offers itself as the best edge to secure a market in a developing country where transport and vehicle demands are evolving.

Demand of Cars

With the rising fuel costs and the increasing cost of the public and private travel on roads throughout the country, it is most cost-effective to get a small car that one can drive around. An owned car works out to be much cheaper and affordable especially when the cost and government taxes on fuel are still expected to rise. Thus, even second hand cars are securing a sound market owing to the expense factor. This economy car segment offers more mileage as well as lesser risks against the lack of insurance.

The Diverse Demand

Earlier the demand of cars was restricted to the men. Now, the demand covers men, women and other teenagers. Even amongst the segment of teenagers, young girls desire to own small cars for daily travel to college and work. Older women too have changed their ideas and evolved to become car drivers. This new added segment of car drivers uses cars for basic small utility and daily chores. Thus, car companies desire to utilise the same requirement and cater to the demand.

Expanding Middle Class

Cars are no more a luxury good. The rise of the vast middle class section of the population coupled with their rising incomes makes the increase in the demand for these cars an inevitable factor. What makes these cars even more attractive is the rising income of the middle class. The teeming millions in the country are now marching towards owning cars. Thus, car manufacturing units see no end to the demand of the said segment of cars amidst the affordability unseen earlier.

Thus, there is no doubt about why and how the rise of the mid and small segment of cars is on a rise. The demand is yet to increase and is not expected to fall. Amongst, the expected forecasts of rising demand the car manufacturers are in the process of adding in more luxurious but cost effective choices to suit the desires to purchase cars.

  1. Wow! this is the car that I love because this is small and yes i can definitely afford to buy it. :D

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