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The year 2008 is completely dedicated to the to the Small car segment. The reason for the small car to be so popular is the Tata’s Nano, world’s cheapest small car which has pushed the other car makers to roll out small cars to India. Indian auto industry is growing in an excellent speed and we have potential for cars from all the segments but currently, it is the small car segment that rules the Indian car market.
Besides they are best suited for the middle class as they are affordable and in today’s congested world it is easy to park too. Now with the excise duty cut on small cars by the government has further strengthened the small car sales. Even the auto industry was waiting for such a bonanza from the government from a very long time. The excise is duty is reduced to 12% from the earlier 16 percent.
As we all know it is the mainly the middle class family who opt for the small cars and the price plays primary role and the style and performance comes secondary. Now with upcoming Nano those who were planning to buy two-wheeler have postponed their buy and now waiting for Nano.
Shelling out Rs 1 lakh to 1.50 lakh to own a small car is not so big deal for most middle class families now. The reduction in excise duty has tempted many of the Nano lovers who are waiting patiently for another half a year to go for buying small cars like Maruti 800, Alto instead of waiting so long to take the advantage of excise duty reduction.
Many car makers like Hyundai, Toyota and others are planning to roll out small cars to India as they see a great potential for this segment.
At last, the excise duty cheered up the middle class families by encouraging them to buy a small car without waiting for Nano.
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