Automakers from around the world will unveil around 50 new fuel-efficient cars and SUV models at India's Auto Expo. Tata Motors’ Jaguar Land Rover, Ford Motor Co, SsangYong Motors, Toyota Motor Corp., Renault, and Marti Suzuki have confirmed attendance in the Indian auto event. The carmakers are taking stand in India, underscoring the country’s importance to the auto industry.
“The overwhelming feeling is that this current sales slowdown is a temporary phenomenon and global carmakers are certainly betting on India to bounce back,” R.C. Bhargava, chairman of Maruti Suzuki, told Reuters." Bhargava noted that that there is a race to offer a small and cheap hybrid car, which would surely be a hit in the Indian market.
Car sales in India increased by 30% in the fiscal year to end-March 2011. Following that period, however, interest rate hikes and rising input costs jacked up car prices, thus decreasing the demand for cars.