Small is 'Big' for car makers this summer

Higher interest rates may have been slowing down sales but the auto market is buzzing with new launches. Two new variants of existing small cars have rolled out of the Fiat and Hyundai stables. And the action seems to be in the 1.1 litre segment.

Interest rate hikes are making both consumers as well as the automakers sweat this summer. But manufacturers are betting on new launches in the small car segment to drive growth. The Hyundai Getz has a new zing in its "Prime" avataar and the Fiat's Palio rolled out a new hatchback version from its Ranjangaon plant. Both come with a 1.1 litre engine, which gives them the excise benefit. This segment makes up more than 50% of the Indian car market.

In order to reduce prices of Getz, Hyundai has launched its new version with a 1.1 litre engine, which is the same as the one used in Santro. Hyundai will also launch the diesel versions of both Getz and Santro. HS Lheem, Managing Director, Hyundai Motor India, says, "We will lauch the diesel version of Getz in the early in second half of 2007."

Getz 'Prime' is priced at Rs 3.89 lakhs, while the price of Fiat's Palio 1.1 is Rs 3.49 lakh. Palio Stile 1.6  is priced at Rs 4.31 lakh. But that is not all - the small car segment will see GM launch the Chevy Spark, while Hyundai plans to drive in the Santro twin model, code-named PA. Exciting times, right?