The Indian auto industry came of age in the mid- 1990's, after decades of closed-door policies and protectionism, with the arrival of a bevy of the big- boys of automobiles staring from Suzuki,
(who incidentally got a head start during the mid-80s, as a technology partner for the government owned Maruti), Daewoo, Mitsubishi, Ford, General Motors, Daimler Chrysler and others.

Today, there are over 35 different models to choose from (not a great number to be proud of, still a long way from three or four models until then) and growing at almost one new launch a month. In fact, the number of cars on the roads are increasing at such a clip that it is now the second fastest (after China, of course!) growing car market in Asia. Now, this has made the Volks Wagens and Fords of the industrial world to sit up and take notice of India.

Most of the manufacturers have treaded the Indian path with some trepidation. While some of them have been runaway hits like the Hyundai Santro and the Toyota Qualis- both low-end offerings in their segments- others have been no so much lucky, especially Fiat, and the Opel brand of cars, from General Motors and also (the now defunct) Peugeot, who had a miserable alliance with Premier Auto India.

The Indian automobile market has, however, matured in a very short span. From a price sensitive market, it has turned into a discerning one, with customers demanding more comforts and frills and willing to shell out that little extra for it. Now they demand world class products and world class comforts This has made many car makers to re-think on their initial strategies, and this has resulted in them bringing many spruced up variants of a model, each one added with one creature comfort than the other. But that said, it still the mileage- per- kilometer equation that primarily influences the decision of the car buyer when he plonkes his money on a car. Even in the luxury segment, diesel cars far outsell petrol variants, due to the comparatively cheap diesel prices.

The largest selling cars in the country are the tiny hatchbacks, which costs around Rs 200,000 ($4,000 US) Two models from the Maruti stable; the Maruti 800 and the Maruti Alto, have a virtual monopoly over this segment. You would wonder why not many others are in the race here. The answer is simple, high volumes but low margins

But there is increasing action happening in the, D-segment hatchbacks, comprising of Hyundai Santro, Tata Indica, Suzuki Wagon-R, Fiat Palio, Maruti Versa etc. These are perceived to be family cars ranging from Rs 300,000 to 470,000. Now these are cars that will satisfy a middle class urban family, and will comfortably take them through India’s urban maze.

But it is the mid-size segment, which has seen the biggest growth in the last couple of years. The three box Sedans rule the roost here along with "Jeeps" or Multi-utility vehicles. The favourites in this segment are Hyundai Accent, Tata Indigo, Ford Ikon, Opel Corsa and Fiat Petra, Hyundai Getz etc. They come with a bumper sticker that rangesfrom Rs 480,000 to Rs 650,000. There are also estates or MUVs like Tata Indigo Marina, Ford Fusion, Chevorlet Tavera in the same price band. Now, this is the mostly sought after category among the Indian car manufacturers and the action is expected to heat up in the coming months.

The D+ segment has the entry-level "luxury" cars, starting with a Honda City at around Rs 780,000 to a Skoda Octavia at about Rs 1,250,000. These are cars which are spacious, contemporary and stylish. Moreover, these are the same cars that are available in the developed markets also. The favourites here are Honda City, Mitsubishi Lancer, Chevorlet Optra, Suzuki Baleno, Toyota Corolla, Skoda Octavia, and Hyundai Elantra etc.