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Compact Sedan Segment in India set to rise
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The sub four meter sedan category is set to witness numerous new players entering the segment who are looking at capitalizing on the excise benefit
It was Tata Motors that took the government stipulated definition of a small car and used it to their advantage to spawn a new segment, namely the sub four meter sedan with the introduction of the Indigo CS. Not only did customers get a car with a boot, the lower excise tax that a sub four meter car attracts also allowed the product to be rather competitively priced.
For Maruti Suzuki, this segment has also proved to be a lucrative draw and considering the fact that they clock the highest amount of sales in the small car space, a sub four meter sedan made great sense. In doing so, the company revisited the Dzire brand and introduced the new car in the desired specification. Till date, the Dzire has dominated the segment and the only other car to contend against has been the Tata Indigo eCS. Of course with increase competition, Tata has decided to add another contender to the list with a shortened version of the Tata Manza. Related: The New Swift DZire: Special Coverage
Having said that, the game has only begun as numerous manufacturers are looking at this segment as a major growth driver for their business. Topping the list is Honda Cars India which is ready with their Brio sedan, namely the Amaze, which not only fits in the sub four meter category but also boasts of being the first diesel car on offer from the manufacturer. Mahindra has had a shortened version of the Verito in the pipeline.
The benefit of being charged only a 12 per cent excise duty vis-a-vis the 22 per cent charged for sedans above four meters has proved to be lucrative for Volkswagen, Hyundai and Toyota as well. Volkswagen is reportedly working on a sub four meter sedan based on the Polo. This car will slot in between the larger Vento and the Polo hatch and as expected, it will have a rather competitive price tag. In the same vein, Hyundai and Toyota are working on notchback versions of their i20 and Liva hatches to fit the stipulated requirements yet cater to a whole new segment of car buyer.
In catering to this segment, manufacturers might just be able to add the impetus required to turn around the sluggish market. While the overall numbers are still growing, the rate of growth has slowed down across the spectrum except for the sub four meter sedan bracket. A slew of new products in this segment has the potential to boost market growth and provide a renewed impetus to the domestic car market here in India.
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Readers' opinions ( 5 )
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Amitej Singh
I believe that Indian customers have gone mad about these Stupid, horrible looking So Called Sedans. A sensible buyer with a little aesthetic sense would never buy this. For instance the new Dzire is one of the worst looking cars and now its time for Honda Amaze to replace Dzire as the worst car by looks. But now it seems that the auto manufacturers just want sales . Looks, design are now on their priority list. Now I guess PREMIER automobiles will be working hard for relaunching PADMINI for all those fools who love Cheap Sedans. That way a 4 metre Ambassador can be also thought of..... LOL
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prasad
I think this is being very critical of buyers who want to buy VFM goods. This is a segment of people who are sensible and want to buy only what they need. Not every one is rich and want to splurge to keep onlookers happy. They would rather keep themselves happy by buying what they need.And Premier padmini was not bad during its hey days. It did not have enough money to withstand the competition. Premier padmini is still a good looking car for some people.. like the way they feel about the moris minor or a beetle..Manufactueres hire people who are smart to find out what people need.. and they have figured out that this is good investment. While common people will have their opinions about what others need or do not need. But, it rarely matters for the one who is getting paid to do this job. If it works.. it the manufacturer who makes money.. whether you like it or not.. LOL
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roopam
actually, a sub 4 meter Ambassador was considered by the company. I believe you will find stories about this car online!!!!
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Suraj
Its a great move...Many middle class ppl would like to have a sedan one...but cant afford as most of them are 8lakhs ......if sub 4 metre compact sedan comes....many middle class ppl can own a sedan...with in 7Lakhs.....Already success of Dzire and Indigo are the examples....I hope next year....Honda Brio Amaze is going to dominate this segment as it also has diesel cars now....
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Akshay
i agree wth u.......and honda amaze vl defntlyy gve tough competn to segment leader dzire.....lets c how responsive is 1.5 i-DTEC tecnology.......
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