Small cars industry offers an economical option to consumers who want to buy affordable cars.
Increasing fuel prices have made consumers to look for small and fuel efficient cars. The demand for small and economical cars is expected to rise manifolds. There is great urgency among big car manufacturers to introduce small cars in the market. Small cars are termed as superminis in Europe.

Why small cars?
Apart from rising fuel costs, higher interest rates and growth in consumer debt has also contributed to the popularity of small cars. Sale of small cars has stood out at a time when a general slowdown in car sales is being experienced. Small cars are also believed to be environment friendly since it has low emission levels. It's well suited for driving around in a city.

Top small cars
Renault Clio, Fiat 500, Peugeot 207, Ford Fiesta, Volkswagen Polo, Nissan Micra, Toyota Yaris, Vauxhall Corsa, MINI, and Daihatsu Sirion are some popular, small cars available to consumers.

Small car industry in India
Maruti, Tata Motors, Hyundai, Chevrolet, and Fiat dominate small car market in India. Many of world's top small car manufacturers have started operations in India. Tata Indica continues to be a popular option for consumers looking to purchase a small car in India. Other popular small cars in India include Maruti Suzuki Alto, Hyundai Santro Xing, Chevrolet Spark, Maruti Suzuki WagonR, Hyundai i10, and Fiat Palio Stile. Major automobile manufacturers like General Motors, Nissan, and Fiat have agreed that India offers a great business opportunity for all small car manufacturers. Japanese carmaker Nissan Motor Corp has identified India as one of its focus markets. It has massive expansion plans for Indian small car industry.

Tata's Nano car
Tata Motors is going to launch world's most affordable car- Nano. Tata Motors promised to offer Nano at a sale price of $2,500. Tata Motors has plans to export its small car, Tata Indica, to other countries.