Maruti Udyog managing director Jagdish Khattar is passionate about small cars. And it’s not just because his company is the undisputed leader in this segment in India. Khattar says it is only in small cars that India stands a chance of achieving global dominance!“I am convinced that we (as a country) can never be a major player in the global automobile industry as a whole. But we can certainly achieve domination in the small car segment. We are already the No 2 small car maker in the world and, as a country, we should build on this lead,” he told DNA Money in an exclusive interview.
Sample this: During the first nine months of this fiscal, more than 5.3 lakh small cars were sold in the domestic market, with almost another lakh being exported. So, in all, India sold over six lakh small cars during the April-December period. If the present 24.2% growth trend continues, then the fiscal year could close at well above the eight lakh unit mark, making India the second largest small car producer after Japan and relegating the current number two, Brazil, to the third position at about seven lakh small cars.Khattar says if the present growth rate continues, then India could easily become the largest small car producer in the next two-three years! But is the sheer size of the Indian small car mart enough to beat the global biggies?
Khattar points out that several countries across the world encourage small cars by offering incentives such as lower excise duty, road tax and parking charges.
Does this mean India should also consider further incentivisation of small cars? Khattar shrugs, not wanting to tackle this sensitive issue just before the budget.
And just when it seems that Khattar has given a clinching argument in favour of small cars, he reminds you gently about the carbon dioxide norms that are being enforced across Europe. Loosely translated, these norms have forced car makers in Europe to look towards India as a destination for mass manufacture of small cars - production of smaller cars reduces carbon dioxide emissions - which can then be imported back and sold across Europe. Any wonder then that companies such as Nissan, Renault, Volvo, and Mitsubishi have already tapped India for their small car ambitions?
SOURCE : DNA
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