India Gains with Popularity of Small Cars

India is the world's largest small car market and is now all set to gain from an increased demand for small cars from East Asia and European countries. The country is well known in automotive circles as the world's largest small car manufacturer.

Small cars have suddenly become popular in many wealthy western countries after the recent revelations of global warming. People now prefer the small car for their mileage and easy usability. In countries like Germany, France, UK and Italy, the local governments are promoting use of small cars. This was evident as Maruti Suzuki reported a hike in exports to 1.5 lakh units in the new fiscal year 2009-10.

Bangalore based Reva Electric Car Company is receiving a large support from UK government. The South Korean car manufacturer Hyundai Motors has exported 2.53 lakh units to it overseas markets in the last fiscal year.

Most of the exports are results of European government policies. Germany France and Italy have devised methods of scrappage of old car in exchange for new cars. According to Industry sources, nearly 2 Lakh cars were swapped under the scheme and nearly 90 percent of them purchased small cars. Germany is paying €2,500 for the exchange scheme to every car owner.

The South Korean government offers 70 percent rebate on taxes to car owners who exchange their 10 year old cars for smaller or hybrid cars.

The UK government offers a discount of £ 2000 on new cars in exchange for their old cars. Apart from this the British government, also offers £ 5000 rebate on small electric vehicles for the next five years. The British government has an aim to run 1 lakh electric car in London. According to an estimate the country produces 15 lakh small cars per year. India is in a position to take advantage of the surging demand and cater to the world markets. Indian exports have grown by 54 percent in the last fiscal year and is valued at $ 6 billion. If more cars are exported, it means increased revenue for India. The country can sail on top of the small car wave spread across the world.

Source: http://www.carazoo.com/smallcars