Small Cars Have Arrived – Says Toyota & Volkswagen

At the first automotive motor show of the New Year in New Delhi, India, things seem to have suddenly become hot for almost all the major automotive companies. Be it the Volkswagen, Toyota or General Motors. Every company seems to be making efforts to come up with a solution to the needs of emerging economies like India and Latin American markets.

 

So, what makes these automotive majors to rush and make a beeline for markets outside the West? Well, you may be wondering on the reason for such a flight from the West to Asia and the Latin American nations.

 

First of all, it would be suicidal for companies to leave the West. So, while the West market remains intact there is no denying the important fact that the West is still to recover from the onslaught of Recession. Look at General Motors that sought Bankruptcy protection under the Chapter 11. Now compare this with India and Brazil. These countries are already over Recession. Disposable income of citizens is increasing and the population is just right to afford a massive audience.

 

The sheer volume of potential sales is a driving force for companies like Toyota and Volkswagen to step in these automotive markets by offering newer and modern looking cars that are priced right under 10000$. Toyota has on display a concept car that is priced under 10K. It’s named Etios and should be commercially available in 2011. Volkswagen has priced Polo under 10K and is going to market it in the next 3 months or so. Add to that the General Motors’ Beat that is being touted as a face-saver for the ailing GM. It is already being booked and is available under 10K.

 

All this implies one thing; the automotive companies of the world have woken up to the vastly untapped markets of India, Brazil, Russia and some other Latin American countries as a way to minimize their reliance on the West. It becomes a dual-advantage. On the one side, they split their eggs in 2 baskets and on the other side they are able to design newer cars that are suitable for newer markets.

 

And all this has been made possible by the sharp and talented automotive designers of these companies, thus allowing them to boost their bottomlines and ensuring a growth chart that does not solely rely on the West for everything. One must compliment the research and development teams in having risen to the tough challenge of producing quality cars that befit the specific requirements of these countries.

 

While the Detroit Motor Show is one step away, the eagerness of Toyota to launch Etios in India does signify a recognition of the massive market offered in India. There is no denying the fact that existing car manufacturers in India have had a merry run so far.

 

Given the penchant for European cars, it will be a tough challenge for Suzuki and Hyundai when Volkswagen assumes active role. Come to think of this. When Skoda came over in India, few would have given it the chance of so much success. And with Volkswagen indicating its willingness to make available Global models in India, time seems to be just right for them to tap the Indian audiences.

 

Toyota has further showed willingness by announcing that it intends to launch the hybrid Prius in India as well Autel MaxiSys Pro.

 

All this is a pointer to the fact that the world is becoming a smaller place for the automotive companies. Armed with solid research and development, it remains to be seen if the companies like Toyota, Volkswagen and General Motors are able to come up trump in their fight against existing players like Suzuki and Hyundai.

 

Only time shall answer this question; for now I am happy at how things are evolving across the Globe. I, for sure, will expect a lot at the Detroit Show in the US.

Rob May is an avid automotive expert who follows the automotive segment across the Globe Autel MaxiSys MS908. He writes on automotive subjects, green cars, and also offers suggestions on fuel cards that are suitable for fleet management. Rob recommends a fuel card analysis for every company of size. This ensures that you are able to create margins out of your fuel spending.
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