Tokyo, December 28: In India, automakers are spending $6 billion to increase capacity as economic growth and rising incomes make cars affordable to more people. Vehicle sales may triple by 2015 in the country, where only seven in 1,000 people now own an automobile.Suzuki Motor Corp, facing growing threats in India's car market. Maruti Suzuki may cut the price of the Maruti 800 to compete with the Tata Motors small car.
Cutting prices may help Suzuki maintain dominance in its biggest market as the company faces greater competition from Tata and foreign rivals including General Motors Corp and Hyundai Motor Co. Other automakers including Renault SA have also proposed selling ultra-cheap cars in India, the world's second fastest-growing major auto market.
The Maruti 800 was launched in 1983 and is regarded as an iconic brand that brought in the winds of change in the Indian auto market, used to the Ambassadors and Fiats till then.