Low Priced Cars for India – Suzuki, Toyota, GM, Honda, Nissan, Daihatsu

Minicars, minivehicles make up one third of the Japanese domestic market in car sales.

The challenge now is how to cheapen the cars so they can be sold as low-priced vehicles to the BRIC – Brazil, India, Russia and China.

Suzuki Motor Corp sells 200 units a month per outlet in India and seem content to stay the course.

Half of all cars in India are produced by Maruti Suzuki India.

Suzuki's growth in India has been driven by minivehicles the automaker initially

developed for the Japanese markets.

Other car makers would like to have similar success with minicars.

Mitsubishi Motors Corp. plans to release an upgraded version of its 1-liter "i" minicar in Europe.

Honda Motor Co. is also setting its sights on developing low-priced subcompacts for the global market by working with Yachiyo on the whole development process.

Daihatsu, who's parent is Toyota Motor Corp, beats Suzuki in Japan, but not in India. Toyota is/was concerned that Daihatsu's price of its lowest-end model at 700,000 yen, would not compete in the Indian market, where vehicles often sell for under 500,000 yen.

GM started selling its 1-liter Chevrolet Spark for 300,000 rupees to 420,000 rupees (roughly 900,000 yen to 1,260,000 yen) in India.

Toyota and Nissan will make offerings in 2010.

Suzuki…will spend Y200 million over the next three years to strengthen is dominance – R&D facilities is one aspect.

Do you think Japan's big three can move in on Suzuki's hold in India? 

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