[arbardhan]

Not in the next 5 years. However definitely by 10 years. Govt will target the entry level segment to move to EV.

A decent powered city car with decent range will be a good proposition for first time buyers.

Even if it's not , IC will become expensive and ppl will opt for EV.

So I believe, the cheap cars will become EV first at least in India.
These cars will be around 8 lacs onroad ( its a guess w/o analysis)

[Somz]

No. Cheap small cars will not be dead in near future. Entry level cars offers better cost of ownership and value for money for first time buyers. Maruti will dominate this market especially with rural population.

[N33raj]

No. As many members have rightly pointed out, India with its huge population and small per capita income levels will always have a need for a cheap small car. It is the ultimate aspiration for so many people.

The segment may not have high growth and have very thin margins and with the govt making basic safety equipment compulsory, the final price may go up; but it will not deter buyers in areas outside urban spaces. Finally, if they cannot but it new, they will buy it used; but buy it they will.

[SLK]

I voted yes, because I think they will lose their lead and will survive only to become terribly outdated and marginalized.

Why?

India is a poor country, there is no doubt on that. If the per-capita was to be distributed evenly, No one in the country will be able to buy a car.

So who buys a car in India, and why?

People who need have a car:

1) People who drive to work: These people can afford fuel/ maintenance/ often care for safety/ convenience (ie. not using a 2 wheeler) and have parking at work places. This section of workers/ business owners generally have incomes which grow and hence with growing incomes and the financial mindset in India that, it is OK to take a loan to buy a car makes many afford 6-10L cars without much hassle.

2) People who don't need to drive to work, but need for social/ family outings: They need a car only for family outings or social occasions. The Indian society has multiple faces here, car is so unaffordable for the masses that it is a status symbol and so no one wants to buy a cheap car.

3) People who can afford only the cheapest car: These people mostly don't drive to work and hence only need for occasional family travel. The latest trend I see is that people use taxis/ hire commercial cars of friends/ relatives and travel a couple of classes above what could otherwise can afford.

There are other types of people who can afford better cars but still buy small cars for many personal reason, they will always continue to exist but in minority.

Basically - if someone is in the socio-economic category, where he/she can afford to travel by car, buying a car is a smaller cost to bear.

PS: Of course, I had to generalize - but I believe the trend will be against smaller/ cheaper cars.

[Mach_1590]

Small cars(size wise) will exist, as long as you have congested metros. Also, on hilly terrains and rural area, small cars are pretty handy. But they won't come cheap once the safety and emission compliance kicks in hard. They will perhaps lose the low cost advantage but then that's how the market develops.

[ashwinprakas]

I voted Yes.

There will always be small/entry level cars but they are not cheap anymore.

In fact the pricing of said entry level cars are such that it would surely make one peep at the closest higher offering.

[ashking101]

Voted "No".

Most of the families who want to own a first four wheeler, always begin their search in this small car segment only.

[Ajay_Sensei]

Voted 'No'.

I feel there will always be a market for cheaper and smaller cars, especially in high density urban areas. The definition of cheap may change with rising prosperity, cars in future may adhere to higher safety norms, and they may be powered by electric/hydrogen. However, as long as there is a need for individual mobility, cheaper cars will be there in the market.
The trends in developed economies reflect consumer preferences in societies which are at the zenith of economic wealth and prosperity.

[mpthy]

I cannot vote, but would have voted "No".

The streets in some of the smaller cities are really small. Add chaotic traffic to this mix. Any car bigger than a small hatchback will struggle to navigate this.

As for larger cities, parking in a city like Mumbai is very tight. No car is better than a small hatchback to run errands around the city, and use as a family car for a small family or a beater car for a larger family.

[kamilharis]

Voted Yes.

But I would split it like below:

Cheap cars- will not survive, no one is really aiming for an Alto/Nano as his first car, at least the millennials. Tiago/i10/Swift is the least they ask for these days.

Small cars- Will survive.

[Lalvaz]

India is such a large and diverse country. We have people from all strata, but are inherently a poor country. So while there may be a rapidly growing middle class and a very large number (in absolute terms) of affluent people, we still have a very large base of poor people.

These poor people traditionally travelled by local trains in metros like Bombay, and by buses in other areas. Increasingly they are being edged out of the new age public transport systems, like the metros. So they will still require a means to commute. In many cases, we see them using 2 wheelers. Interestingly 2 wheeler sales figures are considered as the best indicator of economic performance of our country's economy.

I see a large number of 2 wheeler users also migrating to cheap small cars over time. So, IMO, cheap cars will continue to rule the roost. They may change from IC to EV, but they will definitely flourish in India, simply because they are needed. They fulfil a need which is otherwise unmet.